Possible setup of head and shoulders formation on the 4H chart. On higher timeframes this pair is bullish to overextended, giving a possibility of a short term pullback or reversal of the 4 year bull run.
Recent tweezer top combined with T/K convergence and RSI approach to trendline indicates recent kiwi bull run may be due for a reversal or short term consolidation. Short position taken at 0.84495 with close stops. Will be watching this pair closely as it may still have some "gas" left for a further push up.
After a multi-day consolidation period, the loonie appears to be preparing for a break to the downside. Rejection of bullish RSI trend support (02Mar-04Mar), imminent bearish T/K cross, and candle close below kumo at 1100EST all contribute towards a bearish outlook. Short position initiated at 1.0141 with stop at kumo top +5 pips. Will manually exit trade if...
After a brief rebound into and above the kumo, price action has broken below the kumo again, with neutral k/t. In the short term I expect price action to touch the resistance zone at the kumo bottom + K/T confluence before falling again towards the old trendline and psychological support near 0.83. A break and close above the kumo top or RSI break above the...
Price action on the 1H chart appears to be forming a rising wedge, with several recent failures to break at the top resistance. RSI supported by trendline shown. Break and close above wedge indicates continuation of bull move, though in the short term I expect price action to fall back towards the kijunsen and wedge support with a possibility of a break below.
RSI divergence and T/K cross give initial bull signal. Candle closes above kumo (coinciding with fibo retracement from last major high) serve to confirm long signal. Small long entry will be taken with wide stops will be entered with stops tightening and additional lots entered as new trend develops. Candle close below kumo/fibo/trendline confluence invalidates trade.
RSI is showing bearish divergence after a break above 1.40 psych resistance during last night's Asian session. Went short at 1.04073 with a 20 pip stop (above the recent high). I don't trade with profit targets, instead waiting for the trade to be invalidated based on the Ichimoku system. Additional shorts will be taken with candle close below kumo. EDIT: stopped...
