Key support/resistance level at 0.7288 was broken last night, and price has consolidated above that level since. The Gartley Sell Pattern is now a failed one, and the reason for my short trade has disappeared. I exited my short trade at 0.7306 for a 30 point loss. RSI has broken above a falling trend line, and there is real risk for further upside.

Hourly Chart:

Gartley sell pattern has formed on the hourly NZDUSD chart. Price is near the starting point of the Gartley pattern and is testing 0.7288 for the third time, potentially forming a triple top. This level is near very strong historical resistance at 0.7310..25. I went short NZDUSD at 0.7276 with a stop at 0.7340 and a target of 0.7132, the 38.2 Fibonacci level of the AB=CD part of the Gartley pattern. Trading against the daily trend here, which is a concern, but risk/return ratio is too good to pass it up. Hourly RSI is in favor of this trade. First support comes in at 0.7230, then at 0.7190.

Hourly Chart:

Price stopped just shy of 0.7100, and RSI posts several bearish divergences. The pattern on the hourlies is still corrective and still qualifies as a Gartley sell pattern until price stays below 0.7160. I’m waiting for a sustained break below the hourly EMA10 to get confirmation of a move lower to go short.

Hourly Chart:

Been watching the NZDUSD pair for the last few days. A nice classic ABCD correction has unfolded and has reached its completion point near 0.700 this morning, with a smaller Gartley sell pattern embedded in the last leg of this correction. 0.700…0.735 is a strong resistance area, and I expect the pair to rollover very soon. This would present a good sell opportunity, with a minimum target of 0.6690. Waiting for confirmation is key since a break above the upper channel line on the hourly chart could easily lead to an acceleration of the upside momentum and a move beyond 0.7035.

Hourly Chart: