NZDUSD - Calling another short
I've been wrong twice in a row about this pair, but I still believe it's a short trade.
Looking at the weekly, it looks to me like we are in a flag formation that keeps whipsawing and making false breakouts. It is still a downtrend if you zoom out.
On the daily chart, a confirmed double top formation is the trigger. I will play this trade in two ways. I will take some money off the table just above the 61.8% retracement, because if I am wrong about the weekly chart, that is where this pair should stop falling. I've been wrong in the past on this pair, so I might as well play it safe.
The remaining part of the position I will keep until I change my bias, 0.62 is a level where I will have to reassess, if NZDUSD goes there of course.
Note that the stop level is a close over type of stop, I do not close a trade until the day ended above or below (depending if it is a long or short trade) my stop. This goes for all my trades.
Looking at the weekly, it looks to me like we are in a flag formation that keeps whipsawing and making false breakouts. It is still a downtrend if you zoom out.
On the daily chart, a confirmed double top formation is the trigger. I will play this trade in two ways. I will take some money off the table just above the 61.8% retracement, because if I am wrong about the weekly chart, that is where this pair should stop falling. I've been wrong in the past on this pair, so I might as well play it safe.
The remaining part of the position I will keep until I change my bias, 0.62 is a level where I will have to reassess, if NZDUSD goes there of course.
Note that the stop level is a close over type of stop, I do not close a trade until the day ended above or below (depending if it is a long or short trade) my stop. This goes for all my trades.
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