NZD/USD downside bias.

10 Jan 2016

Looking at NZD/USD's weekly chart we can see it approached and bounced of a long term descending trend line initially bringing our attention to this pair. Heading onto the daily chart we can see the pair formed a double top (highlighted by the yellow line) this was put in place after price was following a ascending trend line. NZD/USD went on to break and close below both the inner and outer trend lines supporting our downside target. Going on to the 4 hour chart we can see the 100 SMA crossed above the 50 SMA securing our downside bias, after this we executed our sell trade with a downside target zone of 0.62543 - 0.60592 (green zone)