NZDUSD has been stuck in a range for the past few days after a minor fall from a supply zone.
The range has been identified as a distribution and it is currently at it's final stages after jumping across the creek (JAC) and showing some signs of strength (SOS) with an accompanying rise in volume.
With the first LPSy formed what we are now waiting for is for price to break the range's support (break the last low point to form a new lower high/lower low) and to retrace back so as to form a second LPSy before we go ahead and open our short positions. The RRR on this trade is a whooping 1:33 (although you can stretch it to up to 1:150 if you manage to snipe your entry using the 1M timeframe).
Once all our criteria are met we will provide an update on this setup.
The range has been identified as a distribution and it is currently at it's final stages after jumping across the creek (JAC) and showing some signs of strength (SOS) with an accompanying rise in volume.
With the first LPSy formed what we are now waiting for is for price to break the range's support (break the last low point to form a new lower high/lower low) and to retrace back so as to form a second LPSy before we go ahead and open our short positions. The RRR on this trade is a whooping 1:33 (although you can stretch it to up to 1:150 if you manage to snipe your entry using the 1M timeframe).
Once all our criteria are met we will provide an update on this setup.