Monthly: Previous 3 Black crows, current bounce off support and trend line support.
Weekly: Ascending triangle was broken and in a consolidation zone. Testing support and trend line support.
Daily: Ranging 0.69700 – 0.68500. Double bottom rejection off support and trend line support.
H4: Double bottom rejection from 0.68500.
NZDUSD Overall Analysis
- NZD fundamental has been positive and looking at the technical analysis we are on the way to test the neckline of the double bottom. Everything depends is on the movement of the USD. If it weakens we can see us breaking that neckline and continuing higher.
- For entries, we would want a break of the neckline and then retested to confirm it going higher.
- It has been rejected from a very strong historical and psychological level, that I am confident that will it continue higher. In addition, looking at the weekly, it seems as if we broke the ascending triangle and now in a consolidation zone before we continue higher. So a breakout is likely to occur soon (keep an eye out!)
- However, looking at the monthly we can see a double top and sitting on the neckline, so, we should wait and see where it goes.
- Fundamentally, as mentioned I see NZDUSD skyrocketing to 0.70500 after breaking the double bottom neckline and in the long term hitting 0.73200.
- IMPORTANT, with NZD keep an eye out for the GDT Index, Unemployment and Visitor Arrival data.