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Fxprotrader
Oct 24, 2016 5:57 AM

NZDUSD: Pending Head & Shoulders Pattern At Key Level Short

New Zealand Dollar/U.S. DollarFXCM

Description

Watching the daily chart of NZDUSD we see that although the market is in an uptrend we have a great sell opportunity which may take a while to complete. A bearish divergence in MACD shows that the uptrend is losing steam and we may soon have a price reversal. If price continues it's way up, it will reach the upper parallel of a downsloping median line set at a level where we will have the completion of a head & shoulders pattern. We may watch for price action at that level or if you can afford a sl above the head of the pattern, just the sell at the parallel.

Have a nice trading week..!
Comments
IvanLabrie
Possibly a significant move to the downside brewing.
FiguringOutFinance
Hi Fxprotrader, thank you for sharing. I'd also add that the 50% retracement (7th Sept high --> 13th Oct low) also sits around the 72.575-620 region, potentially adding further confluence. This 50% was tested and rejected last week too - so potentially one to keep an eye out for, too!
Fxprotrader
Good to know mate, thanks for sharing :)
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