NZD/USD : You're observing the NZD/USD pair closely, particularly around the support level of 0.60970. You've outlined two scenarios based on how the price behaves around this level. Firstly, if the price forms a turning candle at 0.61070, you anticipate it will move upwards. In this case, your priority scenario involves waiting for the price to reach the resistance level at 0.61370. If it breaks above this resistance, you expect further upward movement towards 0.61577. Near this higher resistance level, you'll be watching for a trading setup to determine your next move. You acknowledge that the price could potentially reach as high as 0.61289, depending on the news background and price reaction.
On the other hand, if the price consolidates below 0.64870, you anticipate a downward movement towards the support level at 0.61368. Even in this scenario, you'll be vigilant for bullish signals near this support level, indicating a potential upward reversal. You're not particularly interested in local movements today; instead, you're focused on the broader trend and are actively seeking bullish signals from nearby support levels to anticipate upward price movement.
Looking at the chart, you're inclined towards selling the instrument, with a specific entry point at 0.63660, where resistance is visible. You anticipate the price to continue falling until it reaches 0.61510, where you plan to take profit. However, if there's a break in the structure and a reversal signal appears, you're prepared to cut losses at 0.60400 and switch to buying the instrument. If 0.6160 is broken as resistance, you'll consider it as a support level for potential buying opportunities.
