FOREX Chart Of The Day: NZDUSD What Next?
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler Head Currency Analyst. In this video, we’re going to go through NZD/USD.
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I see a lot of downside to this market, so I just wanted to go over in a little bit more detail.
The weekly time frame and monthly time frame, I’m just going to go for the higher time frame, just to give us a bit more perspective of what’s going on. The monthly time frame, we’ve got one more day closing on this, and we can see that the price came back up to this level just through here and rejected. We can see if we just look at this monthly. How well the price kind of reacts to this area so we can see here resistance, resistance, a little support there, and some support just through here as well.
The market is coming to this point rejected. So what I’m expecting here is another move down on the NZD/USD. Whether it gets back to these lows is a different question or whether it may just come back to sort of that 0.62 level and then kind of continues up or whatever.
All we can see right now is just that price is rejecting this zone once again. Kiwi has been noted that our strength from weakness has been very very strong and that it could be a point of reversal from last week.
We’re now seeing that reversal starting to play out as we go to sort of the weekly time frame. We can see that the price is like double topped here, broken through, and formed a lower close candle.
We are also overbought on the RSI, so we can see down here overbought on the RSI in the position of resistance. Expecting the market to push to the downside.
Looking for this market to kind of head towards that 6-100 areas, even that 6-200 sort of level through here, expecting some downside.
Now if we go into that daily time frame, we’re starting to see a little bit of a pullback which is great. That’s what we want to see. Now that the market or typically in trending markets we see, when they do make lower lows we can see a retest of that structure and continuation, and that’s what I want to see here.
I want to see this market break down, pull back, get to this neckline area of resistance, and continue to push to the downside. So what I’m expecting here is Kiwi to kind of pull back up into this zone, form bearish candlestick, and get involved in a trading market short once again.
I really like the NZD/USD here, and what we might see on this pullback or what could see on this pullback is a little bit of a four-hour uptrend. Don’t be too concerned with the trend in the four-hour of it.
Just let me go to the four-hour. What I’m expecting to see from the four-hour time frame or what we could look for is the fact that if we are going to see a retracement, I typically see a slight uptrend, and then once that trend breaks and we start seeing that four starts making lower lows then that’s a really good time to start looking to short the market once again.
So, even if we kind of consolidate here, break these lows. That’s going to be a good sign of further downside as well. Really like four hours for trend continuation moves but expecting a bit of a pullback first into this level roundabout that 0.66 area, once we get that then I’m looking for short opportunities on Kiwi.
So keep an eye on this market, I really like it. One of my favorite currency pairs this week.
Expecting that Dollar strength as well. Dollars just have a bit of a pullback which is why we’re seeing a pullback on Kiwi, but expecting further downside to this market as I said. 6 to a hundred sort of down through here is a good area to be eyeing out for a move to the downside.
NZD/USD looking good. I hope you enjoy this video and I’ll catch you on the next one.
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