Good NZD Short Opportunity!

NZDUSD seems to be completing its run up from the lows near 0.6350, and is forming a typical exhaustion Head and Shoulders Pattern, with a neckline near the uptrending trendline support near the 0.7120 region.

Trade Idea : Short NZDUSD at 0.7100-0.7120 levels with a target price in the region of 0.6800-0.6820 region, for a >4% return.

Rationale :

• Completion of H&S Pattern as detailed above, comes in at 0.6800
  
• As seen in the chart, this is also the 0.5% retracement of the recent move from 0.6350 to the recent highs of 0.7300
  
• This is also near the longer term trendline support which comes in at the 0.6815 region.
  

Dagangan aktif:

Trade entered at 0.7106 right now.

Dagangan aktif:

Pattern invalidated...looking to exit trade at cost of 0.7206
(Left a limit order to close at cost)
While I remain bearish on NZD, The trading pattern has been invalidated, and hence am exiting the position