NZDUSD - Bearish Engulfing
Updated
NZDUSD has formed a 100 score bearish engulfing short setup on the daily time frame. After forming a head & shoulders pattern, price shot up above the right shoulder, breaking strongly out of the upper Bollinger Band, and was quickly rejected forming a bearish engulfing. A strong previous downtrend, a bearish engulfing on the daily and monthly time frames, and a very strong upper Bollinger Band outbreak confirm this setup. 1:11 Risk to reward ratio. SL set above bearish engulfing high. TP set above strong support near previous lows. I will include the monthly point of view in the comments below.
Note
Monthly POV: Note
The daily and monthly charts look very similar. They both have very strong previous downtrends which indicates that more downside is very likely. Bearish engulfing candles closed on daily and monthly time frames.Note
Still holding short. Dropping as expected. Currently +217 pips in profit.Note
Note
Resistance broken! Another bearish engulfing is forming on daily time frame.Trade closed: target reached
+432 pips profit.
Related publications
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.