NZDUSD Top-Down Analysis

#NZD/USD#

Hello Traders,

Here is the Top-Down Analysis of NZDUSD (Monthly, Weekly, Daily for direction and 4H for entry) for

Week 48 - Nov 23

M > Market was moving in a downward channel . Price broke out of channel to test monthly resistance level . This level had previously pushed price to downside and we expect price to get pushed down again.

W > Price moved out of channel creating HH and HL in a rising megaphone. In this move price has tested resistance trend-line of previous channel as support and moved further bullish to test monthly support. Subsequently price dropped to test supported created at trend-line before making a major bullish move. We can now see bearish divergence in W chart. We can also see a W formation and can set its neck at bearish target.

D > Price has now reached monthly resistance level in its bullish move. We can see bearish divergence but have no reversal confirmation.

As per COT NZD further added both Long and Short improving net positions to max for the year, ZXY has been gaining strength for past 3 weeks, it is now testing a major resistance level . We can expect some correction to the downside this week.

4H > We can see deceleration and will wait for creation of LL in 4H time frame for bearish confirmation.

Pair Correlation > NZDUSD has a positive correlation with NZDJPY , NZDCHF , NZDCAD and GBPUSD and negative correlation with EURNZD .

This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.

Thank You
AP17FX