During
Friday’s session, the NZD/USD dropped really fast towards the 0.7000 level, but
at the same time it bounced right back up to close the daily candle as a “hammer”
formation on the daily chart. The “hammer” pattern is a reversal bullish
formation, which is confirmed when the following candles are bullish or to the
upside. In this case, there was no confirmation of the “hammer” pattern,
because today the price of the NZD/USD drops again and visits the 0.7000 zone. It
is possible for the pair to continue dropping and it could go and visit the
0.6900 level. The 0.6900 level has acted as a support in the past and another
visit to that area could stall the pair there and it may even cause a bounce to
the upside. In case the pair bounces from the 0.7000 level, its next relevant
support is at the 0.7100 level where we can also see the 200 day EMA. Above the
200 day EMA there is a congestion area with a resistance at the 0.7246 level.
Looks like it will keep pushing lower.
ReplyDeleteThe pair just broke below the important level at 0.7000 level.
ReplyDeleteIt will likely continue falling.
ReplyDeleteIt's very bearish for the moment.
ReplyDeleteUseful information, thank you for sharing!
ReplyDeleteEnjoyed the article, thank you.
ReplyDeleteA significant drop indeed.
ReplyDeleteThank you for the analysis i'll keep an eye on the currency.
ReplyDeleteGreat post! I fully agree with your view.
ReplyDelete