NZD/CHF:
Our expectations: Downtrend is now confirmed after second test of the breakout below the key horizontal level. A downward price channel is formed but a short positions are logical only after a correction around 0.6890 and stop at 0,6980.
Alternative scenario: If price breaks back above the previous top this will probably lead to a short term consolidation.
Comments: Downtrend and short term price channel as price is below the diagonal resistance.
Breakout below a key horizontal level and second successful test.
Price below SMA50 SMA200 in bearish formation.
False breakout of the SMA50 and bearish engulfing - strong signal for a probable decline.
DeМ: doesn't give a clear signal but a reversal below the previous top increases the probability for a downward movement.
Trader Nikolay Georgiev
Varchev Traders
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