The NZDUSD has broken the bullish trend on the lower time frames. Could this be a sign of a reversal to come?
Watch the video to learn more…
The strength meter this week has highlighted the potential for the New Zealand Dollar to reverse its current bullish path. Recently we have seen the New Zealand Dollar strengthen against most currencies reaching an extreme high on the strength meter. This high can often see a market reverse if the right fundamentals and technical can be seen.
The chart above shows that the price this week has already seen a significant sell off with the price breaking trend on the 4hr time frame. This could be a sign that the buying momentum is fading and that sellers could reverse the trend. Looking at the 4hr time frame we can see that the market has formed a new low which could offer short trading opportunities if the price was to reach the supply zone which has been formed by using the last bullish candle before price made the new low. If the price is going to get to the supply zone we could see the price bounce from the demand zone which it is sitting at currently. If the price forms a bullish reversal pattern we could look for a short term long to the supply zone for the trend opportunity short.
Have you seen the week ahead analysis? you can find it here.
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