Sell the NZD/USD rally in a downtrend

Forexmentor.com Forex Trading Price Action

Yesterday, on the NZD/USD pair (‘KIWI’), I talked about the topping-out process. Today, what I see is MACD turning down on the weekly chart – MACD already having penetrated its trigger line on the daily chart. Not only that, I do believe we are seeing the formation of a downtrend continuation pattern on the daily as well.

Now, looking at the lower-level charts, all I see happening is price rising on the 15 minute chart to challenge the 50x100x200 EMAs on the 4 hour and 1 hour charts. Translation: Price is spitting in the wind, but don’t tell the dumb money that, as we Big Dogs are getting set to sell this rally in the overall downtrend. Got it? Sure you do!

Fundamentally, recent GDP data disappointed, so it was just a matter of time before the technicals fell in line. Now, we have synergy between those two metrics. For more on the inner workings of technical analysis, as it relates to the forex, please join the 10% of traders who are on the winning side of their trades. You’ll find them in the members’ area at www.forexmentor.com.

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