The #NZDUSD formed a strong bearish daily close from the key resistance level we highlighted in the week ahead analysis. Now, this has formed we can look at different options for short opportunities.
I’ll be taking you through NZD/USD as the price just rejected the key 0.770 level we spoke about in the Week Ahead Analysis.
We mentioned that we’re going to see low ranging candlesticks at a key resistance level. When you start to see those, it could be a good sign that a momentum move in either direction can be expected.
But at a resistance level, we’re likely to see a bearish move, which is what we saw yesterday. There was a pullback, and a continuation of a move. It looks like we’re coming into yesterday’s low. We could see a break and retest a move down on an intraday opportunity.
However, we could look to short this price on a daily opportunity. We stopped losses above the highs, targeting key swing lows.
The daily timeframe closes bearish off the key resistance level at 0.7070, offering short opportunities. The price overnight retraced 50% and the price is now moving towards the daily lows. If the price breaks, we can expect to see a continuation of the trend towards the swing lows.
The price is starting to trend lower on the hourly timeframe. The market is making lower lows and lower highs consecutively. We want to see a clear breakout of this price.
There is a clear breakout of the trend in the four-hour timeframe. If we want a retest, we could look for key short opportunities at the 0.7020 area, which are the current lows for short opportunities. This shows us that the daily trend will continue because the four-hour is making lower lows and low highs.
In the four-hour timeframe, we can see that the price is forming lower lows and lower highs. This pattern forms when the daily downtrend continues, which can offer short opportunities on retracements back into minor resistance levels.
When it starts making higher highs and higher lows, it means that we’re in the retracement phase. So, we should look for that switch first, and then look for key short opportunities on pullbacks.
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