Home Technical Analysis NZDUSD preparing for further backwardation
NZDUSD preparing for further backwardation

NZDUSD preparing for further backwardation

1
0

The daily studies of NZDUSD pair show how bulls have been thwarted in the 0.7740 where prices have plummeted yesterday, engulfing the positivity of the previous day.

nzdusd-30-04

This price action encourages us to suggest more bearish movements over upcoming session, but we should witness a sustained breakout below the support set from March low at 0.7190.

The aforementioned support intersects with SMA 50; thus, breakout below it will be a very negative factor.

This breakout may affirm drawing rising wedge pattern with soft technical objectives at 0.7420.

As we need a breakout, we also need more confirmations on RSI14 and ADX. Thereby, we prefer to use sell stop order at 0.7550.

Support  0.7550 0.7500 0.7420
Resistance 0.7640 0.7700 0.7740

(1)

Amir El-Araby Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

LEAVE YOUR COMMENT

Your email address will not be published. Required fields are marked *