NZD/USD: we wait a 50% correction of the last bar for short positions with the long term trend.

16.06.2017 / 09:00

Rating:

NZD/USD 16.06.2017

Our expectations: A possibility for short positions from key levels of resistance and after a false breakout above the diagonal resistance. To minimize risk we should wait a 50% correction of the last bar at 0,7230 with SL at 0,7345 or a breakout below 0,7166 which will increase the likelihood for a new downward movement.

Alternative scenario: If the price breaks above the upper diagonal resistance that will make long positions more rational.

Comments: Long term downtrend and correction to 38,2 Fibonacci.

Four lower tops and price below diagonal and horizontal resistances.

A bearish engulfing pattern at levels of resistance after a clear upward short term movement - negative signal.

The price is above the moving averages but they do not give clear signal in the short term choppy.

DeM(14) reverses above 0,7 downward - increases the probability of the short positions.

Trader Nikolay Georgiev

Varchev Traders

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NZD/USD: we wait a 50% correction of the last bar for short positions with the long term trend.

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