NZDUSD Forex Trading Analysis


NZDUSD Dragon Fly Formation

Ever since the pair NZDUSD has rejected from the resistance of 0.7327 levels, Kiwi dollar has been losing its strength but taken support at 0.6950 on the flip side. But, after dropping from major resistance at 0.7327 levels indicates previous consolidation trend seems again little weaker at this juncture. For now, more potential for downside targets are foreseen as current prices have dropped below 7DMA on daily charts. Currently, prices hanging around 7EMA daily graph. Well, you can also observe 7DMA crosses below 21DMA on intraday charts. No momentum in buying despite rallies after Dragon fly doji. If it doesn’t hold support at 7EMA, dips up to 50 pips on intraday basis and retest of 0.6950 is also possible ahead of RBNZ’s OCR cut expectation (NZDUSD Forex Trading Analysis).

NZDUSD Forex Trading Analysis 1

NZDUSD Possible Head And Shoulder

Recovery momentum above 0.7130-35 session peak region is likely to get extended towards 0.7167-70 resistance, above which the pair seems all set to reclaim 0.7200 handle and head towards retesting 0.7250 strong resistance area. NZDUSD looks neutral for the week ahead around 0.7150-0.7200. The RBNZ on Thu is more likely to cause a NZD fall than a rise, but the immediate US dollar outlook is weak (setting aside the fickle US payrolls data on Fri) (NZDUSD Forex Trading Analysis).

NZDUSD Forex Trading Analysis 2

NZDUSD Forex Trading Analysis

Currently, the NZDUSD pair trades -0.42% lower at 0.7114, hovering above 0.71 handle over the last few hours. The bears continue to ride higher, as the divergent monetary policy outlooks between the Fed and RBNZ got more pronounced after the release of stronger US jobs report. While last week’s rate cut by the RBA, adds pressure on the RBNZ to ease further this week.

NZDUSD Forex Trading Analysis

NZDUSD Advanced Pattern

The NZDUSD currently has no strong technical bias which will leave it particularly beholden to fundamentals this week. Specifically, both RSI and EMA activity are relatively flat and will likely need further time before giving a strong signal. However, the H4 Parabolic SAR has moved into a bearish configuration which could see the pair continue sliding ahead of the OCR announcement. This being said, the 100 day EMA has proven to be a source of dynamic support recently which could limit how far the NZD sinks this week.

NZDUSD Forex Trading Analysis 4

NZDUSD Long Entry Levels

More chances for a bullish continuation, what is confirmed by a recent multi time frame price action research, and important level zones. How to use levels – 1. Wait till the level is reached, 2. Reversal pattern, 3. Confirmation , 4. Entry, 5. Target (intraday) is a last level on the direction mentioned with arrows. Reviewing the most recent PA 1&2 period patterns we have: 1D Bearish Pattern Knowing the patterns of a higher time frame is very important. Sometimes they can conflict one to another, but it gives us the information of the possible correctional moves, or a start of a new direction, so basically, every time when conflict exists, you must examine a chart whether it is a correctional pattern appearance or a new direction (NZDUSD Forex Trading Analysis).

NZDUSD Forex Trading Analysis 5

Of late the pair has remained under pressure on increasing odds of an eventual rate-cut by RBNZ, when it announces its monetary policy decision later during this week on Thursday. Although, the upcoming decision might have already been priced-in markets remain skeptic of further dovish comments at the subsequent RBNZ press conference, which is now seen restricting any swift recovery for the pair.