NZDUSD Technical Analysis January 29/2019
NZDUSD remains bullish as long as the January 22/2019 low remains untouched. If you read the article, NZDUSD : Possible Bullish Patterns, published on December 19/2018 you will already know that we are only looking to BUY/LONG kiwi dollar. If you missed that move higher then there is another opportunity to BUY the pair on the 1 hour chart where there are clear visible bullish patterns that can be seen. In the chart below, market patterns are used to determine where price can possibly reverse and bounce higher. The first bullish pattern (blue) triggers BUYS at the BC 0.50% Fib. retracement level and if NZDUSD extends lower it will be met by the second bullish pattern (pink) which triggers BUYS at the XA 0.886% Fib. retracement level. Traders should watch these two levels in the reversal zone (blue box) for a possible reaction bounce higher because there has been previous support/resistance price action in the past. Blue bullish pattern invalidates if price breaks below the point B low and the pink bullish pattern invalidates if price moves below the point X low. Traders will need to wait and watch how price reacts at the possible reversal/support zone (blue box) and see if the market reacts higher to any of these bullish patterns. If looking to trade NZDUSD stops should be placed at the point B low of the blue bullish pattern or for tighter stops at the point X low of the pink bullish pattern looking for a bounce/rally higher to extend above the January 28/2019 highs. Only time will tell what NZDUSD will do but at least now you are aware of the possible area where Kiwi can bounce from.
NZDUSD 1 Hour Chart 1.29.2019
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade.