Good morning traders! Today we will analyze NZD/USD in multiple timeframes to show you a potential bearish opportunity. We must highlight the term POTENTIAL since the setup is not ready yet, and we need certain conditions to be met first.
ðļFirst of all, we are going to analyze the Weekly chart, which is where this bearish view comes from:
The price was strongly rejected in the resistance zone. The next area where we consider that there may be a reversal is in the support zone. This enables us to look for a bearish scenario in a lower timeframe.
ðļIn the Daily chart (published), we see that the price is against a local support zone, slightly penetrated, but the breakout is not confirmed yet.
Of course, there is still the possibility that this is a false breakout, and the price will return to the bullish direction.
The way to reduce this happening is to wait for a clear break + retest + rejection.