NZDUSD - Short Idea for w/c 23/05/2022
Updated
Fundamentals:
- Commercials - CoT Report shows increased net long positions at a 52 week high
- Rising open interest supports trend continuation (daily downtrend)
Technicals:
- Daily/H4 order block highlighted - lines up with high volume area, indicating potential reversal.
- Currency strength based on RSI also supports weakening NZD against the USD.
- Commercials - CoT Report shows increased net long positions at a 52 week high
- Rising open interest supports trend continuation (daily downtrend)
Technicals:
- Daily/H4 order block highlighted - lines up with high volume area, indicating potential reversal.
- Currency strength based on RSI also supports weakening NZD against the USD.
Order cancelled
Comment
I cancelled this order on May 23rd - at breakeven. The reason being - NZD has reached a 52 week high on net long positions, which supports a potential reversal of price. This is exactly what we are seeing. There's still a lot of selling pressure in this area but we need to wait for the next COT report to see whether this still has potential for the sell.
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