NZD/USD Sell Limit Setup
Updated
The NZD/USD currency pair has exhibited a bearish trend through a significant portion of 2023. This analysis draws upon multiple technical observations and recent market dynamics that underscore a potential continuation of this bearish trajectory.
Recent Lows and Bearish Momentum: The pair recently plunged to a fresh low for 2023 at 0.5815, indicating a strong bearish momentum. Although there was a slight recovery to 0.5840, the overwhelming bearish pressure persists, signaling a potential further downside .
Critical Support Level:The level of 0.5800 has emerged as a crucial support zone. A sustained move below this level could unveil additional downside potential, possibly extending the bearish trend towards deeper values not witnessed in late October 2023 .
Yearly Trend and Correction Phase: Since the onset of 2023, the pair has been on a declining trajectory, moving from a yearly high of 0.6534 down to 0.5887. Although there was a minor correction phase around 0.5979, the prevailing trend remains bearish.
Tight Recent Trading Range: The pair navigated through a tight trading range recently, sustaining values near lows. Despite a fleeting run-up to 0.60555, the pair met with incremental selling pressure leading to a subsequent decline.
Trade Setup: Based on the prevailing bearish sentiment, a short swing trade setup is proposed: Entry Point: A short entry is advised at 0.595, aligning with a potential resistance zone near the recent correction phase. Stop Loss: A stop loss is set at 0.605, slightly above the recent run-up, to mitigate potential reversals against the trade. Take Profit: The take profit target is set at 0.575, near the critical support level, anticipating a further decline.
Recent Lows and Bearish Momentum: The pair recently plunged to a fresh low for 2023 at 0.5815, indicating a strong bearish momentum. Although there was a slight recovery to 0.5840, the overwhelming bearish pressure persists, signaling a potential further downside .
Critical Support Level:The level of 0.5800 has emerged as a crucial support zone. A sustained move below this level could unveil additional downside potential, possibly extending the bearish trend towards deeper values not witnessed in late October 2023 .
Yearly Trend and Correction Phase: Since the onset of 2023, the pair has been on a declining trajectory, moving from a yearly high of 0.6534 down to 0.5887. Although there was a minor correction phase around 0.5979, the prevailing trend remains bearish.
Tight Recent Trading Range: The pair navigated through a tight trading range recently, sustaining values near lows. Despite a fleeting run-up to 0.60555, the pair met with incremental selling pressure leading to a subsequent decline.
Trade Setup: Based on the prevailing bearish sentiment, a short swing trade setup is proposed: Entry Point: A short entry is advised at 0.595, aligning with a potential resistance zone near the recent correction phase. Stop Loss: A stop loss is set at 0.605, slightly above the recent run-up, to mitigate potential reversals against the trade. Take Profit: The take profit target is set at 0.575, near the critical support level, anticipating a further decline.
Trade active
Trade closed: stop reached
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.