NZDUSD Short Liquidity| Daily Resistance| Local Support Target Evening Traders,
Today’s Analysis – NZDUSD – impulse move above daily resistance with an immediate sell off, indicating a liquidity pool.
Points to consider,
- Impulse bull move ( Volume Climax)
- Short liquidity (Daily Resistance)
- Bearish Engulfing candle (Short Selling)
- Local Support target
- Overextended Oscillators
NZDUSD’s impulse bull move ended with a volume climax node, indicating a temporary top.
Price closed candles above daily resistance with no bull volume follow through allowing for short liquidity.
Confirmation was on a bearish engulfing candle back below daily resistance.
The Oscillators are both recovering from over extended levels, a lot of stored momentum to the downside.
Local support is the immediate target, price respecting this level will confirm an S/R flip.
Overall, in my opinion, NZDUSD is likely to impulse down if this is a true liquidity grab. A bounce is likely at local support as this is a technical trade location.
What are your thoughts?
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And remember,
“If you don’t respect risk, eventually they’ll carry you out.” – Larry Hite
