FOREX Chart Of The Day: NZDUSD Breaks Lower
Is NZDUSD on your watchlist?
In our latest video we discuss the recent move on the major forex pair as well as some stop management on one of our open trades.
Watch the video to learn more…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, head currency analyst.
In this video, we’re going to look over the Kiwi. As we were looking for the market to breakdown. We started to see some decent moves out of it. We’re short NZD/USD with short NZD/JPY. I’m going to break those markets down. I’m also going to cover the other positions that we have in play because the moves have gone in our favor, and it covered what we did last week and some.
If we go into NZD/USD first, the reason we were looking for the ultimate breakdown here was the fact that price had made this lower low pattern through here, and then the market rallied back up into the key structure lows just through here and was failing to break any higher.
We had this almost fake out pattern where price creates a bit of an inside candle. It then looks like we’re going to see a continuation to the upside, and then hits the week, closes back within the previous candlestick range.
There was a lot of indecision going on around here on the market. The fact that we broke and made lower lows and came and re-tested that structure point, it gave us a signal to say yep, this market could be now on its way back to the downside.
If we take a look at that weekly, even monthly side of things. We looked at the monthly at the end of the month and said, well, the price is at this area here at this resistance point. We’re expecting the market to drop to the downside, it closed bearish. We expect some kind of re-test of this structure down here on Kiwi. How can we take advantage of that?
The thing is, we wanted to see that daily breakdown. We have that lower low pattern now. We had the retracement back to it, we’ve got that consolidation. The price is now breaking in our favor. If it continues to go that way and hits those targets and breaks this level just through here as well that 0.6530, I’d expect a continuation of that Kiwi to the downside.
Looking good here at the moment, same with NZD/JPY. Took a couple of days to start moving on NZD/JPY. The price again, similar sort of pattern to what we saw here on NZD/USD. The market makes a nice lower low pattern, then makes it’s way back up. Where does it re-test those previous structure lows?
Drops, rallies, takes out those highs here, creates a false breakout pattern, where we get a close above the previous high, and then a close back within the high. Now we’re starting to see that move pushing to the downside. Great level down here, around about that 69.90 area.
Looking again if that price breaks through there, can we see a continuation down? I’m starting to see prices roll over in our favor here. We’ll see how that moves.
EUR/AUD is another market that we’ve been in for quite a while. We like this market because of that daily structure– if I zoom in. The reason why we like it so much was the fact that price made this double bottom pattern through here, rallied up, came back down, retested that structure.
We looked for a long opportunity. Unfortunately, it came back and retested double-bottomed, but kept us in the trade, and now we’re starting to move and head towards those targets just through here.
But one thing we can do, by looking at the four-hour time frame on Euro, is the way it’s moved. I would suggest now we can move that stop loss to break even, cover that move just through there, and hopefully, the price can continue to the upside.
We’ve got this sort of high in here that could be acting as support through there. If it then pushes and hits targets, that’s all good for us there. But at least we’ve covered some capital just through there, EUR/AUD looking pretty good. Finally started to make its move to the upside. Now let’s see if I can continue.
USD/CHF. I still like USD/CHF. It came back into these highs again counter break even started to create a nice bullish move again. The four-hour I like, because we changed cycle again on the four-hours, made a higher high. We’ve pulled back into that now. We’re starting to make our moves up.
I’d like to see it kind of give us a little bit more. There’s a little bit of a sticking point here, around about 0.9160, where the markets recently found some support and resistance.
If it can break through that, that would be good for some possible adding positions with targets being that first high in there, and we can see that continuation after that point.
But at the moment, I like USD/CHF, I like EUR/AUD obviously, Kiwi’s looking good as well. We’ll hold these and see if they can hit those targets through there, and hopefully end the week with a good result.
Thanks for watching. I’ll speak to you soon.
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