Potential cup and handle forming
I have been rough on some people for offering scenarios and refusing to pick one direction, which is what you have to do if you are gonna make money trading. Even so, I'm gonna offer this as a potential scenario because it's the one I see as most likely (but not guaranteed). NZDUSD went up and now it is likely to pause/chop sideways with a downward bias. One takeaway from this is if you are thinking about shorting this, don't expect it to be particularly robust. I personally will not be shorting this. Instead, keep an eye out for the handle of the cup, which I think will come in the form of a curve as you see on the chart or as a channel/triangle of some sort. In the end, I, at the moment, suspect we are forming a handle. With that said, there is still significant probability that we do not form a handle, but the way I am approaching this is as a handle.
Note
Also, I tried to give lines that I thought might be helpful, but two things: my goal was to give an idea of what to expect conceptually, with not a ton of emphasis on price levels; however, secondly, with re: to price levels, I think my two bottom lines (for the two different scenarios) may be a tad low...Note
That went well. The handle formed and my lines as drawn were drawn a tad too low, as I suspected they might be
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