NZDUSD: Wait for the touch to supply area for SHORT positionMAIN IDEA: The main idea is to SHORT the rallies, SELL the top.
Here we have 2 possible scenarios on NZDUSD after the ASCENDING CHANNEL pattern:
Scenario 1: The market will go to re-test the supply zone at (0.6945-0.6975) and it will immediately drop down because of the strong sellers pressure caused of the resistance at old highs ( 2018 - 2019).
Scenario 2: After the drop of the touch on the supply area (0.6945-0.6975) the market is trying to form a HEAD & SHOULDERS pattern for a further drop to re-test the support, which was resistance.
--> To conclude you have 2 possible options: Either you see a Head & Shoulders pattern, which if you don't know how it looks like go to my profile and see, I have a very analytical explanation for H&S pattern OR wait for the corrective move to the supply area and SHORT the position from the highs and put your STOP LOSS at around 0.6985.
--> This trade will offer you a very nice opportunity with a very good risk to reward.
--> Watch lower timeframes (1H & 4H) for the price actions signals, so you know when you can extend your take profit target or when you should close your position.
