Home / Forex & Currency Exchange News / NZD/USD in Long-Term Ascending Channel on Weekly

NZD/USD in Long-Term Ascending Channel on Weekly

NZD/USD is still rising inside an ascending channel that has began forming in August of 2015. This channel follows a major downward wave that had brought the currency pair down by 30%. The formation may serve as a continuation pattern with a breakout signaling a good shorting opportunity in New Zealand dollar.

The channel itself is marked with the yellow lines on the chart screenshot below. The cyan line will serve as my entry level. It is positioned at 10% of the channel’s width below the lower border. The green line is to serve as my target level if breakout occurs. It is placed at 100% of the channel’s width below the border. I will set my stop-loss to the high of the breakout bar or to the high of the preceding bar if the major part of the breakout is mostly outside the channel. I believe that a bullish breakout from this pattern does not represent a meaningful trade signal. You can click on the image to see its full-size version:

I detected this channel using the Channel Pattern Detector indicator and built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this NZD/USD pattern. You can trade it using my free Chart Pattern Helper EA.

If you have any questions or comments regarding this ascending channel on NZD/USD chart, please feel free to submit them via the form below.

Posted on Forex blog. Click Here For Original Source Of The Article

About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

Check Also

Neutral FOMC leads to dollar sell-off

Neutral FOMC leads to dollar sell-off

Article by ForexTime Governor Powell did his first FOMC today and to nobody’s surprise rates were lifted to 1.75% (1.50% prev), this lift of 25 basis points was in line with expectations, but the real show was on the question time and statement shortly after it all.  Many in the market had been expecting Powell […]

Leave a Reply

Your email address will not be published. Required fields are marked *