NZDUSD Analysis - July 29, 2019
NZDUSD Analysis:
Technical Analysis:
1) Large Bearish engulfing from the previous weekly candlestick - Price typically eases up.
2) Daily doji indicating indecision, also doji is on a trend line, price losing momentum on 4 hour and 1 hour right toward the trend line.
3) ABCD pattern appears complete (Pink and Blue lines are equal).
4) Doji touching 71 fib level from previous swing low to swing high.
5. Critical zone at .66550, looking for price to break, and move up to previous major support zone of .67250 and then form a double top at .68. Will assess from there.
Fundamental Analysis:
1. USD bearish with a cut in the Federal Funds rate this week
2. NZD bullish with building approvals, not much else news so relying more on technicals.
Technical Analysis:
1) Large Bearish engulfing from the previous weekly candlestick - Price typically eases up.
2) Daily doji indicating indecision, also doji is on a trend line, price losing momentum on 4 hour and 1 hour right toward the trend line.
3) ABCD pattern appears complete (Pink and Blue lines are equal).
4) Doji touching 71 fib level from previous swing low to swing high.
5. Critical zone at .66550, looking for price to break, and move up to previous major support zone of .67250 and then form a double top at .68. Will assess from there.
Fundamental Analysis:
1. USD bearish with a cut in the Federal Funds rate this week
2. NZD bullish with building approvals, not much else news so relying more on technicals.
Commentaire:
So building approvals did not carry much weight however, an analysis that doesn't pull through doesn't make it a bad one. Using trend, this opened a shorting opportunity to previous support after rejection on the trend occurred.