NZDUSD Bearish Inside Day pattern (when overbought) cautions
NZDUSD 0.6812 – neutral – Bearish Inside Day pattern (when overbought) cautions for further pullback
NZDUSD’s remarkable 3-week rally reached a new 4-month high at .6896 (October 15, 2015). While the momentum indicators are overbought, the subsequent bearish Inside Day pattern warns of potential pullback. A break below the .6781 low (October 15, 2015) would expose the .6738/.6707 support area (July 29/August 27, 2015 highs). Below lies the .6619 higher lows (13/14 October, 2015) near 38.2% of the .6235/.6896 upleg where buyers should step in. However, strength above .6896 would defer the downside and accelerate gains towards .6969 (50% of the .7743/.6190 fall) next.
Outlook:
Intraday: neutral
Daily: bullish
Weekly: bullish
NZDUSD’s remarkable 3-week rally reached a new 4-month high at .6896 (October 15, 2015). While the momentum indicators are overbought, the subsequent bearish Inside Day pattern warns of potential pullback. A break below the .6781 low (October 15, 2015) would expose the .6738/.6707 support area (July 29/August 27, 2015 highs). Below lies the .6619 higher lows (13/14 October, 2015) near 38.2% of the .6235/.6896 upleg where buyers should step in. However, strength above .6896 would defer the downside and accelerate gains towards .6969 (50% of the .7743/.6190 fall) next.
Outlook:
Intraday: neutral
Daily: bullish
Weekly: bullish
