Saturday, November 19, 2016

NZD/USD Formed a Flag and Broke Below It



The figure is very clear on the weekly time frame and its height at its base is 550 pips. If the pair reaches its limit it will fall to 0.6530.


On the H4 time frame below the resistance of the middle line of the BB indicator you can see a bearish hammer bar, which is a signal for a renewal of the move to the downside.



On the M5 time frame there is a breakout below a figure that resembles a symmetrical triangle, with a height at its base of 20 pips. I say that it resembles a symmetrical triangle because only the converging trendlines make it appear so. The figure has filled out the entire space between the trendlines, and as we know when there is a symmetrical triangle the most favourable breakout occurs between 2/3rds to 1/3rd L distance from the beginning of the figure. Despite that the move to the downside has begun.



The closest support is at 0.7000, and the support zone around 0.6900 – 0.6850 (visible on the monthly time frame) is especially strong.



9 comments: