As per yesterday’s analysis, there are prospects for the downside on a short-medium term basis offering both day trading fading opportunities and medium-term swing trading opportunities.
Yesterday’s medium-term analysis can be found here: NZD/USD Price Analysis: Longer-term bullish, short-term bearish.
Meanwhile, for the sessions ahead on the 2nd September, starting ahead of the Tokyo open, the price of NZD/USD has retraced a bearish impulse in moves that broke structure initially to the downside and then corrected back above it.
The structure is located between 0.6753 and 0.6760.
The retracement from the lows of the impulse has reached a 61.8% Fibonacci retracement at 0.6763.
Should the hourly conditions now switch from bullish to bearish, and should the price break the structure back to the downside, there will be an opportunity for a downside continuation trade, fading the latest correction.
The following charts offer an illustration of how this trade set-up could come to fruition for a 1:3 risk to reward opportunity:
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