I have never seen a chart like this one. Shown below is a monthly view. The 20 EMA you see is useless. I put on the Ichimoku even though it is perhaps the most lagging of them all. For the first time I saw price below the cloud on all time frames, even the 1 minute. I am sure any oscillator will only show oversold status.

I am a price action trader and cannot at this moment see a trade. While the 4 hour view shows a double bottom, a continuation down cannot be ruled out or rather is the more likely event with this kind of momentum. So a possible trade would be to go short on pull backs. Next supports come in at 1.066 and 1.058 areas. With current price at 1.082 it is hard to imagine such substantial further drops, although this can happen especially with the interest rate differential in favour of NZD.

By now you have sensed my confusion here but I do know that we could possibly be looking at a major trading opportunity in the near future. This forum has several excellent traders including professionals who have been guiding members consistently for a long time. There are some excellent new contributors as well all using various analysis methods. I therefore request their thoughts and analysis on this pair.  

Regards

Views: 110

Comment by Oasis on December 16, 2013 at 12:08pm

Entered short at 1.08231. Stop at 20p. target 50p.

Comment by Oasis on December 16, 2013 at 4:07pm

Got stopped out, looking for more opportunities to short.

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