NZD/USD - Inverted head and shoulder formation on the hourly
The Kiwi has managed to hold its own despite the disappointing GlobalDairyTrade (GDT) auction. Prices slipped by another 7%; down for the third consecutive time.
still, the Kiwi not only managed to avoid hitting fresh daily lows below 0.652 but is attempting to form an inverted head and shoulder formation on the daily hourly chart. The neckline resistance is seen around 0.6489 levels.
I shall wait for a breakout but no sure if i shall add longs, since the USD is on rampage. However, let me warn that long USD is the most overcrowded trade in the city now. A sharp reversal is usually seen when the sentiment is overstretched on one side.
still, the Kiwi not only managed to avoid hitting fresh daily lows below 0.652 but is attempting to form an inverted head and shoulder formation on the daily hourly chart. The neckline resistance is seen around 0.6489 levels.
I shall wait for a breakout but no sure if i shall add longs, since the USD is on rampage. However, let me warn that long USD is the most overcrowded trade in the city now. A sharp reversal is usually seen when the sentiment is overstretched on one side.