smartforexlearning
Short

Potential 4H short on trend line and local support break

FX:NZDUSD   Neuseeländischer Dollar / US-Dollar
On NZDUSD             4H, we can see a beautiful trendline setup. This chart has been going up for a long time and it's showing a nicely trending price. Recently, however, it has pushed into a resistance area created by a previous swing high. If you scroll left, you can clearly see that the previous price top bounced exactly at this level and then started a long bearish trend .

After the test of this resistance level , it sold off very strongly with a large bearish bar and since then, the price has been making lower highs. We can also see that the bullish trend is very extended (over 261.80% Fibonacci extension ) and we could see RSI divergence on the last two swings.

It has all the signs of an impending reversal but I want to see lower lows, though. For this setup to trigger, I want to see a break of the trendline and a break of the 0.732 level. The reason I choose this level is that this previously acted as resistance on the way up and is now a local support, so it's a logical place that I first want to see broken before taking a position.

This setup is part of my Trade Advisor program. With this program, you can learn how to trade these setups, chat with me and can get my full private watchlist every week: http://smartforexlearning.com/trade-advisor/

Find more analysis on http://smartforexlearning.com and give me a follow:
- on Twitter: http://twitter.com/smartfxlearning
- on Facebook: https://www.facebook.com/smartforexlearning
- on Google+: https://plus.google.com/+Smartforexlearning

Good luck trading,
Felix
DE Deutsch
EN English
EN English (UK)
EN English (IN)
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Startseite Aktien-Screener Devisen-Screener Krypto-Screener Wirtschaftskalender So funktioniert es! Chartmerkmale Hausregeln Moderatoren Webseite & Brokerlösungen Widgets Stock Charting Bibliothek Feature-Anfrage Blog & Nachrichten FAQ - Häufige Fragen & Antworten Hilfe & Wiki Twitter
Profil Profileinstellungen Konto und Abrechnung Meine Support Tickets Support kontaktieren Veröffentlichte Ideen Followers Ich folge Private Nachrichten Chat Abmelden