NZDUSD | MY PERSPECTIVE FOR THE WEEKThe NZD/USD pair is struggling to make a decisive move in either direction amid a lack of significant fundamental drivers in the latter part of the week. I am keeping a tab on a possible driver this week as we await Monetary Policy, RBNZD Rate and Interest rate decision on Wednesday for a possible headway. The NZD/USD pair closed the third straight day in the positive territory on Thursday but failed to preserve its bullish momentum on Friday which is a signal of a strong move coming in the following week(s).
With over 80pips in our direction (see link below for reference purpose) before experiencing a decline later in the week; insinuates a weakness of Buyers to push the price to complete Harmonic expectations (AB =CD) hereby making 0.66000level my Key level again for this week as I shall be looking at price reaction at this juncture in the market.
Tendency: Downtrend ( Bearish )
Structure: Channel | Trendline | Breakdown
Observation: i. A Breakdown (0.66375) and Re-test of Current Bullish Trendline (0.66900) on 4H gives a clue in the direction of a shift at the moment that drives towards a Bearish bias.
ii. I was expecting the price to make a Harmonic move (AB = CD) last week but unfortunately, it didn't as the 0.66900 level appears to be a level packed with Selling Pressure driving price further down.
iii. A significant Breakdown of my Key level in the following week(s) shall be a Bearish signal for me as I will be anticipating a hit of my Daily Trendline (seen on the chart) which also coincides with the nearest major Support @ 0.64000 (a psychological level).
iv. It is worthy to note that the economic news coming up mid-week shall be a significant driver in the direction of market participants in the following week(s).
Trading plan: SELL confirmation with a minimum potential profit of 250 pips.
Risk/Reward: 1:3
Potential Duration: 5 to 10 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
NirvanaForex
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
