Potential Short Opportunity for NZDUSD
The pair has seen a rising bullish momentum recently. However, i believe the pair will start reversing and continue its long-term downward trend after meeting the strong resistance zone (as identified by the rectangle). This is a key area and the reaction of the pair at this zone will show us its future direction. My trading plan will be as such:
1) Wait for the pair to show rejection at the resistance area.
2) Open a sell order on pullback
This is a high probability trade as if all the conditions are fulfilled, then we will be trading with the trend. Furthermore, it will show that the recent bullish momentum is just a longer term pullback for the pair to continue its downward push. The risk-reward ratio is also at an attractive 2 giving us more reason to enter the trade if the conditions are fulfilled.
1) Wait for the pair to show rejection at the resistance area.
2) Open a sell order on pullback
This is a high probability trade as if all the conditions are fulfilled, then we will be trading with the trend. Furthermore, it will show that the recent bullish momentum is just a longer term pullback for the pair to continue its downward push. The risk-reward ratio is also at an attractive 2 giving us more reason to enter the trade if the conditions are fulfilled.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.