NZDUSD - At crossroads
Updated
The New Zealand dollar stands at a very interesting level, and it looks to me like it is rejecting it. Sometimes, an instrument finds itself at a point where it's easy to make a bet, if it goes below you short, if it stays above you go long.
The weekly chart shows a possible double bottom (impulse still red, plus this week's candle is all but encouraging) with a possible divergence on the Force Index and Weis Wave.
The daily chart shows a class A bullish divergence with blue impulse, inside a very important area; the neckline of a wide H&S and the weekly double bottom.
The 4H chart shows a further double bottom with a bullish divergence, and the candles are very bullish.
This is an anticipation trade, remember that the weekly is not great, however:
The bullish divergence and double bottom on the 4H chart should push price higher and create a good looking candle tomorrow on the daily chart (the daily chart is already blue, however no bullish candle yet), a good looking candle on the daily chart should make the weekly impulse blue, if not tomorrow, then early next week.
Soft stop below this major low, with a target of the H&S head, around 0.75
The weekly chart shows a possible double bottom (impulse still red, plus this week's candle is all but encouraging) with a possible divergence on the Force Index and Weis Wave.
The daily chart shows a class A bullish divergence with blue impulse, inside a very important area; the neckline of a wide H&S and the weekly double bottom.
The 4H chart shows a further double bottom with a bullish divergence, and the candles are very bullish.
This is an anticipation trade, remember that the weekly is not great, however:
The bullish divergence and double bottom on the 4H chart should push price higher and create a good looking candle tomorrow on the daily chart (the daily chart is already blue, however no bullish candle yet), a good looking candle on the daily chart should make the weekly impulse blue, if not tomorrow, then early next week.
Soft stop below this major low, with a target of the H&S head, around 0.75
Trade closed: target reached
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