Potential Short Opportunity for NZDUSD
The pair has seen a rising bullish momentum recently. However, i believe the pair will start reversing and continue its long-term downward trend after meeting the strong resistance zone (as identified by the rectangle). This is a key area and the reaction of the pair at this zone will show us its future direction. My trading plan will be as such:
1) Wait for the pair to show rejection at the resistance area.
2) Open a sell order on pullback
This is a high probability trade as if all the conditions are fulfilled, then we will be trading with the trend. Furthermore, it will show that the recent bullish momentum is just a longer term pullback for the pair to continue its downward push. The risk-reward ratio is also at an attractive 2 giving us more reason to enter the trade if the conditions are fulfilled.
1) Wait for the pair to show rejection at the resistance area.
2) Open a sell order on pullback
This is a high probability trade as if all the conditions are fulfilled, then we will be trading with the trend. Furthermore, it will show that the recent bullish momentum is just a longer term pullback for the pair to continue its downward push. The risk-reward ratio is also at an attractive 2 giving us more reason to enter the trade if the conditions are fulfilled.
כתב ויתור
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