NZDUSD to take orders back to the bottom of it's range
This is an idea based on accumulation/distribution cycles, order flow, and fundamentals. You will need to know those.
NZDUSD came from a downtrend and found support around 0.6283 where buying slowly started and accumulation began late September ahead of a string of huge misses in USD indicators.
The market then pushed price above 0.6340 liquidity and straight to the last swing high (monthly level, high volume) where distribution started right away and a head and shoulders pattern formed (further confirmation of high volume). If the market sells from here, then we look for the pattern to be completed and because of the strong volume behind the move, 0.6340 orders will be tested again. If there aren't enough there, then the market will continue to drop and look for levels at the support levels below and possibly continue with the downtrend.
See chart for more...
NZDUSD came from a downtrend and found support around 0.6283 where buying slowly started and accumulation began late September ahead of a string of huge misses in USD indicators.
The market then pushed price above 0.6340 liquidity and straight to the last swing high (monthly level, high volume) where distribution started right away and a head and shoulders pattern formed (further confirmation of high volume). If the market sells from here, then we look for the pattern to be completed and because of the strong volume behind the move, 0.6340 orders will be tested again. If there aren't enough there, then the market will continue to drop and look for levels at the support levels below and possibly continue with the downtrend.
See chart for more...
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