Fan Yang
All posts from Fan Yang
Fan Yang in Fan Yang,

NZD/USD - Stalking the Bullish Correction

I have recently been anticipating a bullish correction in NZD/USD to sell when it gets into the 0.6850-0.69 area. 
NZD/USD - Sell on a rally and target 0.6570

So far, NZD/USD has rallied to the 0.6845 level before stalling and forming a triangle in the 1H chart. 

NZD/USD 1H Chart 5/12

(click to enlarge)

If price falls below 0.68, I think we are back into a bearish mode at least in the very short-term with 0.6760 and then 0.6720 in sight. In the medium-term, the 0.6570 area is in still in sight unless price pushes above 0.69. 

NZD/USD 4H Chart 5/12

(click to enlarge)

Perhaps the 4H chart provides a better look at the current bearish breakout followed by a pullback. I and looking to short when price is just a bit higher, preferably closer to the 0.6880 area. I am also looking for the RSI to approach 60 and stall. There would be better reward to risk for putting a stop just above 0.69, and an initial target of 0.6750, which is a conservative considerationthat the market might have turned sideways instead of bearish. 

Below 0.6750 we can probably be a little more creative with the targets going down to 0.6550, which is where I would limit the current bearish outlook.