Dailychartupdates - Question

[Lifesong]

Hi Neal

Your daily update of Tuesday 29th refers.

I've been watching NZD/USD and in your daily update you referred to the bearishness of current price action. On the daily & weekly chart I notice an SK support @ 0.7340 area as well as upsloping trendline and was wondering whether this could be the turning point for a bounce back up (see my attached chart). The question I have is when will you decide that the level has been broken on the daily chart and it will not hold - is it a close below this level? The concern in my question is that the TRSI on daily & weekly is down "hard", but the upsloping trendline is still intact on both. Is it worthwhile risking a trade even though TRSI is down on both and would a trigger on the 4h chart be appropriate to use in this case?

Looking forward to your reply and keep the daily updates coming

[FibMaster]

Yes there is some support coming up, and I would expect a bounce. The bounce may just set up another short entry, because of the strong weekly down-trend.

Until there is support though, the chart continue to be bearish. As you know, we trade whatever the chart is doing, not what we want the chart to do..

How will I know the support is broken? We will be trading below support, and the chart will form lower swing highs below that support level (will be resisting).

-Neal.