NZDCHF Looking for a pullback to go short for the week of 15 AugThis pair is obviously bearish and recently has been consolidating in an upward sloping equidistant channel. Many traders call this a bear flag pattern. What makes this setup more interesting is that price has just bounced below a significant s/r level near 0.6070.
If you look at the H4 chart above, you can see 2 recent bounces off the level, the bounce today ended with a nice engulfing candle. In my opinion, we are ready to head lower. The question in my mind is whether we will see a small pullback up to the s/r level at 0.6070 or perhaps to the top of the channel structure. I am hoping that the bulls will make 1 more attempt and give us a better entry to take a short.
The logical target should be located above the next support in the 0.5900 region.
Always use sound money and risk management and stay patient in all your trades.
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