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

NZD/USD - Stalking Bearish Trade Idea

Recently, we looked at NZD/USD at a confluence of resistance and assessed the reward to risk profile to a bearish trade idea. Let's follow up:

NZD/USD 4H Chart

(click to enlarge)

- The market has neither pushed NZD/USD above the 0.7350 pivot, nor pulled it into a bearish trend.
- Also note that the RSI is right around 50 so it shows that it is neutral. However, there is a bullish aspect to it too. The 4H RSI holding above 40 after previously pushing above 70, shows maintenance of the prevailing bullish momentum. 
Key Support:
- A daily close below 0.7250 could usher in the bearish outlook we anticipated. 
- Then, another clue is whether this 0.7250-0.7260 area will become resistance in a subsequent rebound, which could jump off the 0.7170-0.72 area. 
- In the previous update, we discussed a target of 0.71. But don't be surprised if price slides further down towards the 0.7050-0.7060 area, a key support/resistance pivot.