NZDUSD has been having a strong Bearish trend on the Daily and H4 chart. The price had a little upward correction on the H4 chart as well. Today, we get a Bearish H4 Pinbar from a significant level of Resistance. The current H4 candle has been trying to make a breakout towards the South. If the breakout takes place and we get a nice wave of correction, then an H1 Bearish Engulfing Candle right at the breakout level would be signal to take a short entry. Let us have a look at the H4 NZDUSD chart.
See the Pinbar at 0.69350. The current H4 candle has been trying to make a breakout at 0.68910. If it is able to make the breakout then we have to wait for the next H4 candle to be held by the breakout level as well as an H1 Bearish Engulfing Candle to be formed right at the level of 0.68910 to take the short entry. Let us have a look at the summary of the trade…
- Entry- H1 Bearish Engulfing Candle at 0.68910
- Stop loss- Above 0.69350
- Take profit- 0.68000
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
The Forex market has been sluggish this week. We have not had that many H4 breakouts and full wave correction. Thus, it has been a difficult week for the H4 or the Daily chart trader. However, intraday charts such as 15M, 30M, 1HR charts are active as usual. I recommend that H4 chart traders must hold their patience and wait for the best opportunity.
The post NZDUSD Price Action Analysis – 17th May 2018 appeared first on Advanced Forex Strategies.
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