Today’s Analysis – NZDUSD – impulse move above daily resistance with an immediate sell off, indicating a liquidity pool.
Points to consider, - Impulse bull move ( Volume Climax) - Short liquidity (Daily Resistance) - Bearish Engulfing candle (Short Selling) - Local Support target - Overextended Oscillators
NZDUSD’s impulse bull move ended with a volume climax node, indicating a temporary top.
Price closed candles above daily resistance with no bull volume follow through allowing for short liquidity.
Confirmation was on a bearish engulfing candle back below daily resistance.
The Oscillators are both recovering from over extended levels, a lot of stored momentum to the downside.
Local support is the immediate target, price respecting this level will confirm an S/R flip.
Overall, in my opinion, NZDUSD is likely to impulse down if this is a true liquidity grab. A bounce is likely at local support as this is a technical trade location.
What are your thoughts?
Please leave a like and comment,
And remember,
“If you don’t respect risk, eventually they’ll carry you out.” – Larry Hite
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.