Short NZDUSD for Bear Continuation pattern

As can be seen from the chart, has formed a flag within a larger bearish downtrend - and hence seems to be a bear flag formation, targeting the length of the flag stick at around 0.71 levels.

While the ideal entry point should be closer to the 7280 region, we are initiating a short position with 50% capital at current levels of ±0.7245 and leaving a limit for the balance 50% at 0.7275, targeting 0.7110. The stop-loss for the trade would be beyond the supply zone between 7280 and 7300 at 0.7310.

Sell Entry : 0.7245 (with another sell order at 0.7275)
Target : 0.7110
Stop : 0.7310

Trade closed: stop reached

NZD pushed higher and took out our stop at 0.7310

However, as can be seen from the above chart, we are still in the bear flag formation, so have re-entered the trade at 0.7310 and moved stop to 0.7365

Trade active

Good thing we continued with the idea. The decisive break of the flag occurred with the CPI print, and now we are surely headed lower...

Trade closed: stop reached

mashru

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mashru