Upcoming NZD News:
- Sunday: Retail Sales Q/Q (If met, more possibility of a bounce)
- Previous 0.8%
- Forecast 1.1%
- Tuesday: GDT Index (If higher, then NZD long term will strengthen)
- Previous 3.6%
- Tuesday: PPI Input Q/Q (If higher, bullish NZD)
- Previous 1.0%
Monthly: Previous 3 Black crows, current right on the 0.68500 support and trendline support.
Weekly: Ascending triangle was broken and in a consolidation zone. Testing support and trendline support. Possibility of a weekly bearish flag forming.
Daily: Ranging 0.69500 – 0.68500. Approached the weekly trendline support. Nice convergence, critical area for bounce or break.
H4: Double bottom neckline failed to break twice. Price went above broken support. Critical Zone for a possible bounce after failed to stay under 0.68500.
NZDUSD Overall Analysis
- Before the NZD Interest rates being kept the same, the fundamental data was positive. Regarding the drop with the interest rates being kept the same, I will be doing some research as this has happened multiple times and will back test the strategy on the simulator. If it works out I will share the plan with all of you.
- Price is a sitting at a very critical level, staying above the weekly trendline support and the 0.68500 level may indicate that a bounce is very possible.
- However, if this breaks the next level we are looking at is 0.67.
- Higher Timeframe (Monthly and Weekly) as stated last week has a double top at 0.73200 and its neckline is sitting at 0.68500. Indicating that the break of the 0.68500 level (strong psychological and historical level) will could allow us to create a lower low on the higher timeframes.
- TIP: the coming week is simple, we either break the 0.68500 level, where after the break we should see some sort of last kiss before continuing lower. Or, we bounce off the level, if we bounce we will see 0.69500 again, and if that breaks we will continue to 0.70500. Or, we simply range around 0.69500 and 0.68500 (100 pip range) which is also nice to ride the waves.