NZDUSD - overdue a correction?
Since 19th March 2020 when the price hit .5462, the New Zealand Dollar has pushed impressively higher largely on the back of dollar weakness and currently stands at .6575.
Price has even pushed through the strong historical resistance at .6581 but the move looks ever more unconvincing and having now reached the green upper flag which has held the price, the big question is could this be the start of a deeper correction? Resistance turned support at .6570 could offer the chance for the BULLS to gather and force prices higher and RSI reading are not overbought so we could easily see price head higher but a break of .6560 lower trend line could see a move back to solid support at .6382. On the H1 time frame the ADX is moving into BEARISH territory with D+ crossing over D- and the RSI has crossed down over the 50 day SMA. There remains general dollar weakness in the market so you'd expect this pair to push higher but as ever with FX , expect the unexpected. I'll be shorting this pair on a break of .6560.
Price has even pushed through the strong historical resistance at .6581 but the move looks ever more unconvincing and having now reached the green upper flag which has held the price, the big question is could this be the start of a deeper correction? Resistance turned support at .6570 could offer the chance for the BULLS to gather and force prices higher and RSI reading are not overbought so we could easily see price head higher but a break of .6560 lower trend line could see a move back to solid support at .6382. On the H1 time frame the ADX is moving into BEARISH territory with D+ crossing over D- and the RSI has crossed down over the 50 day SMA. There remains general dollar weakness in the market so you'd expect this pair to push higher but as ever with FX , expect the unexpected. I'll be shorting this pair on a break of .6560.
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