I wrote just one article whilst I was away over the Christmas break and this was on the NZD/USD. A copy of this article can be found through this link. I was watching price as it was butting up against an 18 month bear trend line and suggested traders should watch price action here for any break or respect of this key level. Well, thus far, it appears the latter has evolved.
NZD/USD 4hr: This was how the NZD/USD 4hr chart appeared back in that Jan 1st post:
This is how the 4hr chart appears today:
Price respected the bear trend line and fell through the trading channel’s support trend line whilst also triggering a new TC signal to SHORT. This signal has moved on to give 130 pips, however, there is more support just below that now needs monitoring.
NZD/USD daily: there is a 5 month support trend line, visible on the daily chart, that is just below current price. A break of this level would favour another Bear Flag move.
US$: the US$ has started the year strongly and any bullish break and hold above the 100 resistance level would only help to develop the Bear Flag on the NZD/USD:
Summary: It is now time to watch the Bear Flag’s bottom trend line for any break or respect. Keep an eye on the US$ index as well as any bullish breakout there above 100 would be bearish for the NZD/USD.
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