NZD/USD Trade Analysis - 3 August 2020
By Connor Ballinger, a member of the Duomo Team supporting our Premium Members. This was a break down for NZD/USD trade opportunities on 3 Aug 2020.
This trade opportunity was a combination of small factors taken from multiple time frames to create a detailed story of the current market conditions. The higher time frame analysis consisted of a Type 3 weekly close on a significant level combined with a high momentum bearish close on the daily time frame—both elements suggesting a potential bearish continuation.
As we move to our working time frame, we see that structure has recently shown the first sign of weakness with a lower low in the market. As the price comes back to test the trend line that maps this structure from the other side, combined with the micro-trend line seen below, we have our entry criteria for the short trade.
Unfortunately, the trade entry was missed due to it being slightly outside of my trading session. However, what we have is a simple example of compiling small data elements from multiple time frames to help us make profitable trading decisions.
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