NZDUSD is forming a downtrend channel
In this article, we are drawing Pitchfork channels on NZDUSD
On the weekly NZDJPY chart, we can see that the pair is being rejected by the upside long-term downtrend Pitchfork channel line. The resistance zone is 0.6800-0.6900.
Using Andrews Pitchfork tool hint: to plot Andrew’s Pitchfork on a chart, first, look for three consecutive big highs or lows at the asset’s price. These key points are highlighted in the chart below.
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 indicated below.
On the Daily chart, the pair formed a downtrend Pitchfork channel and we have a rejection again from the key 0.6900 level and a test of the strong downside resistance 0.6700 level. This resistance is the only one left before a hard downside extension into the Median 0.6400 level. By a trading perspective, look for the short trade entries with the stop loss above the 0.6750 level on a daily close below the 0.6710 level targeting 0.6500 first, and in a case of a daily close below this level look for the extreme extension lower into the 0.6400 level. Downside invalidation will come on a stop loss trigger and a daily close above the 0.6750 level.
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