NZD/USD Analysis

In a little over an hour the market will be opened. Lets start off by doing a little bit of technical analysis. For those of you who have more experience in trading know that you should pause trading on Sundays. It is the start of a fresh week and we have to see how things will go, so don't get to eager to make an entry. Always do your analysis and the first pair I will talk about will be NZD/USD. 

I usually start out with the daily, 4hr, 1hr times. The reason I do my analysis with these times is because they are more accurate and reliable. The lower the time frame the more noise occurs which can throw you off your game. I will be providing the 4 hour and 1 hour charts for this analysis. 

In the picture above is my 4 hour chart analysis. Lets start with the blue trend line and why I placed it there. When making trend lines you want to connect 2 wicks with the second wick being lower than the first. In the picture you can see that the green wick shot up and touched that part of the trend line. The trend line is also quite above any of the other wicks so its a strong confirmation that the trend will continue down for some time.

Another indicator is the text that says "Doji Reversal". When you see a candle that has a small body and huge wicks then it is most likely a doji which is a sign of a reversal. Following the doji shows the next 3 candles are bearish which confirms that the reversal did indeed happen. I also used Fibonacci retracement which is a little more advanced and I could most definitely cover that in one of my next blogs. But as you see there are 4 wicks that bounced off the 0.236. Right now that might not mean much to you but that is another indicator that fibonacci will predict that it will go to the 0.764 which is bearish. 

Lets take a look at the 1 hr chart analysis

In this chart you can tell that there is a breakout on the bottom blue trend line. The breakout is the red candle that is highlighted. Currently we are waiting for a retest which will give us a general direction. If you are not sure what a retest is. A retest is after a breakout happens a candle wicks to the trend line and closes without the body passing through. For example if the next candle is bullish but its bottom wick touched the top of the bottom blue trend line then that should indicate that it will be bullish.

Hope you enjoyed reading this, and please share this with your friends who are trying to get more educated on Forex.

Sincerely,

ManBearBull