Forex Analysis – NZDUSD Bearish Continuation
Great time to short this pair for the following reasons: 1) Looking at the bigger picture first, we have rejected the 0.73500 level numerous times on the weekly chart, this area is holding as strong resistance and has caused a reversal in trend.
2) The weekly price has been forming lower highs and lows with a huge bearish engulfing candle 3 weeks ago. This was followed up by a bearish marubozu candle which broke our long term weekly trend line as well as key support.
3) On the daily chart , we’ve touched another area of support at 0.69780 and pulled back to restest weekly trend line as well as previous support now turned resistance.
4) This restest has formed a daily bearish shooting star with a nice long upper wick showing selling pressure, a good sign for reversal.
5) Both weekly and daily EMAs/MAs are in alignment. 6) On the 4 hour, we’ve broken our short term counter trend line and now expecting a move to 0.69800s. I think we can go lower after breaking the target area all the way down to 0.66800s.
Forex Analysis – NZDUSD Sell-Off
NZDUSD Pair set for sell-off to 0.6900 support level on overall Kiwi bearish sentiment whilst US Data drive the Dollar to new highs.