NZDUSD short term pullback before long term rally-up
I have anticipated the rise of New Zealand dollar versus US dollar using a weekly chart which I will share in the related ideas below.
Due to the extreme rejection around 76% of ab leg, I am now expecting the resistance to kick in and drive a pullback towards 38% extension of abc, which is very close to the broken resistance and should now act as support.
Overall this market is bullish, but right now we are seeing extremely overbought prices.
Going down to the 4 hour timeframe, I was able to locate two bearish candlestick reversal signs:
First we see a Dark Cloud.
Consisting of two consecutive candles, the previous candle makes new highs, then the second candle exceeds these highs but is rejected and closes below 50% of the previous candle range which is a sign that buyers have met resistance and the sellers are taking control. This was followed by a Bearish Engulfing pattern.
In this case the Engulfing pattern took out the previous 4 candles low, which signals weakness and confirms that sellers have taken control.
Thank you for reading the analysis and thank you for supporting my channel.
Make sure to like the chart and state your comments in the section below
God bless and happy trading
Due to the extreme rejection around 76% of ab leg, I am now expecting the resistance to kick in and drive a pullback towards 38% extension of abc, which is very close to the broken resistance and should now act as support.
Overall this market is bullish, but right now we are seeing extremely overbought prices.
Going down to the 4 hour timeframe, I was able to locate two bearish candlestick reversal signs:
First we see a Dark Cloud.
Consisting of two consecutive candles, the previous candle makes new highs, then the second candle exceeds these highs but is rejected and closes below 50% of the previous candle range which is a sign that buyers have met resistance and the sellers are taking control. This was followed by a Bearish Engulfing pattern.
In this case the Engulfing pattern took out the previous 4 candles low, which signals weakness and confirms that sellers have taken control.
Thank you for reading the analysis and thank you for supporting my channel.
Make sure to like the chart and state your comments in the section below
God bless and happy trading
Yorum:
Quick intra-day scalp
Yorum:
Price and momentum converging to the downside after classic bearish divergence
Watching the key areas from the session range volume profile carefully
Price and momentum converging to the downside after classic bearish divergence
Watching the key areas from the session range volume profile carefully
