On this weekly chart, we are drawing Pitchfork channels on NZDUSD.
On the weekly NZDUSD chart, we can see that the instrument has been rejected form the 0.7350 level and is extending to the downside. The first stronger resistance is a half of the Pitchfork downside channel 0.6650 level. A daily close below this level would open 0.6200 level as a potential long-term target which is also the median line of the channel.
We have used the combination of the top-down trading analysis and the Andrews Pitchfork channels to get to a trading entry stop loss levels and targets. On the daily chart, the pair is going for a test of the median line of the downtrend Pitchfork channel 0.6720 level. This level needs to be broken for the further downside extension into 0.6650 level. Since we have the overall trend identified as the downtrend by two channels, long-term and short-term, look for the short trade entries with the stop loss above the 0.6820 level.
Happy trading! (click on the chart to enlarge it)
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