Wednesday, July 4, 2018

Possible hammer formation on the NZD/USD

The hammer is a bullish reversal Japanese candlestick pattern. On the weekly chart of the NZD/USD we can see that the price fell to the 0.6700 level and bounces to the upside, leaving behind a hammer formation. On the daily chart of the Kiwi at the left hand side of the image we can see that the price has been falling from the 55 day EMA to the 0.6700 level and forms what it appears to be a double bottom formation. Both, the hammer and the double bottom patterns are bullish reversal patterns. Therefore, we have a high probability of seeing the NZD/USD retracing to the upside. Above the 0.6800 level, its next resistance could be the 0.6900 level, but the 0.7000 level could also act as resistance. On the other hand, if the price continues dropping, then the pair may reach the 0.6600 level.

at

8 comments:

Subscribe to: Post Comments (Atom)

WTI oil at the 200 day EMA

WTI oil breaks below the 66.27 support zone and accelerates its bearish momentum towards the 200 day EMA around the 64.30 level. We have b...

  • The USD/CAD in consolidation mode
    The USD/CAD gets tangled between the 21 day EMA and the 55 day EMA, also between the 1.2800 and the 1.3000. From this point the pair may go...
  • Gold continues consolidating
    The price of gold is still consolidating as shown on the daily chart between the 1281 as support and the 1304 as resistance. At the 1304 lev...
  • Pullback to a key level on the EUR/USD
    The EUR/USD has been very volatile lately, but it has not taken a clear a direction. The pair has been consolidating between the 1.2300 leve...