You are welcome to another edition of our weekly trade plan.
The common currency pairs such as the EURUSD and GBPUSD have not given us something interesting to talk about so we will be on the side lines.
This week we will be looking at the NZDUSD, EURCHF, EURJPY.
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Due to the formation of the bearish pin bar at the 0.6426 support region and the 25 EMA , we expect the Kiwi to fall further aiming at the 0.6298 region and beyond..
However, if you are currently not in the sell trade after the formation of the bearish pin, it would be best to
Be patient and watch for some buy pull back towards the 0.6426 region to go short.
Also looking at the MACD on the 4H chart we can clearly see the divergence showing downward pressure.
Also price is clearly trading below the 25 EMA and middle bollinger which also indicates that the bears are favored.
A daily close above the 0.6448 region nullifies this outlook.
The formation of the long bullish pin bar cutting through the 25EMA and support region clearly indicates bullish momentum. However, for a positive risk/reward we expect price to retrace to the 1.0897 region before we think of going long on this trade targeting the 1.1158 region.
A daily close below the 1.0830 region nullifies this outlook
A daily close below the 117.12 region nullifies this outlook.
Have a great week ahead!!
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