UPDATE – NZDUSD: Downside Potential Continues

Background:

• On 3rd May I published fully annotated charts and analysis of NZDUSD, including my personal trade plan.
• See the original charts, analysis and trade plan HERE > https://charlesclifton.co.uk/nzd-usd-downside-potential-continues/

Since publication, NZDUSD has:

• Continued it’s selloff from 0.6428 (price at point of publication)
• Taken out minor support @ 0.6375
• Continued it’s way south, closing yesterday some 150 pips below 0.6375 at 0.6232
• Remained present on my Forex Strength Vs Weakness Tables – Link to Live Tables HERE

Current Narrative:

• The current narrative remains to the downside
• Sellers remain in control of the weekly, daily and 8 Hour charts
• The market has discounted the 06/20 0.6375 support handle
• As seen above, this instrument has closed lower for 7 weeks in a row
• ADX: All ADX(W) show sellers in control
• Stochastic: All Sto’s show sellers in control

My Call:

• Given the accelerated nature of this downtrend I fully anticipate a pullback at some point to facilitate profit taking
  • If/when this pullback occurs I will apply a Fibonacci retracement tool to measure the 38/50% pullback levels
• I will be holding this short trade until:
  • 0.60 target is attained or
  • Either one of these currencies is removed from the tables – See caveat below

Strength/Weakness Caveat:

• A removal of either of these currencies from my S/W Trading Tables (HERE) would of course negate this entire trade plan