NZDUSD has reached its daily and h4 resistance, which is also acting as a supply region. This over bought area is strong and we expect a reversal at 0.7050. Market has also formed a double top. This pattern when formed and executed, has a high probability of a reversal.

The golden retracement level at the H4 resistance aligns perfectly. The higher the time frame for the retracement levels, the more strong it is. 

NZDUSD was operating within a channel. It has tapped and rejected the resistance ascending trendline, and at the bottom, we have a support ascending trendline waiting to be broken out for sells. Once this happens, there will be high volume push downside.

Both EMA's are bullish right now and on a verge of having a bullish death cross. After the breakout buys on the EMA, the retest had been left due. This means, we will at least see a push down towards the EMA retest, or maybe a break out sell for the EMA's.

Both the oscillators are in an over bought region, and formed a bearish divergence on both. The divergence has impacted the market already and may further continue down.

We anticipate a bearish move on the NZDUSD. We will wait for the retest of the resistance and then take a position. Please bear in mind that the trend is still bullish. If market breaks out from the resistance, we will immediately close our positions with taking a lower hit than anticipated.

NZDUSD shorts

Sep 01 2021

Stop Loss -0.54%

Holding time 21hr

0.70540

Entry price

0.70920

Stop loss price

2