Sell NZDCHF Rising WedgeThe NZD/CHF pair on the M30 timeframe presents a potential selling opportunity due to a recent downward breakout from a rising wedge pattern. This pattern, despite an initial upward angle, is often seen as a bearish reversal signal.
Key Points:
Rising Wedge Breakout: The price has been trading within a rising wedge pattern characterized by converging upward trendlines. While the initial trend appears bullish due to the rising trendlines, this pattern can often be a bearish reversal signal. The recent break below the lower trendline signifies a potential confirmation of a downtrend continuation.
Sell Entry: Consider entering a short position around the current price of 0.5425, positioned close to the breakout level. This offers an entry point near the perceived shift in momentum.
Target Levels: The initial bearish target lies at 0.5390, which represents the support level before the wedge formation. Further downside targets could be determined using other technical analysis methods like Fibonacci retracements or extensions.
Stop-Loss: To manage risk, place a stop-loss order above the broken resistance line of the wedge, ideally around 0.5445. This helps limit potential losses if the price unexpectedly reverses and breaks back upwards.
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