Bottom line: NZDUSD might have completed its drop that had begun from 0.6755 levels earlier. A break above 0.6350 would be encouraging for bulls to gain further.
Technical Analysis:
NZDUSD is believed to have formed a meaningful low just below 0.6200 levels on February 28, 2020. Prices still need to break above 0.6350 levels to confirm the same and push further towards 0.6755 levels going forward. Looking at the wave structure since 0.6755 highs, NZDUSD has dropped in 5 waves labelled here. The entire drop could be the last impulse wave/leg of a larger correction since 0.7562 levels. If the above counts are correct, NZDUSD might have formed a major low at 0.6189 levels and could be underway for a bullish reversal ahead. Also note that break above 0.6350 would be encouraging for bulls but potential remains for the rally to continue until 0.6755, before any meaningful pullback could take place. Most traders might be willing to build aggressive long positions from current levels 0.6290, with protective stop below 0.6189 and projected targets above 0.6755 respectively. A more conservative trading strategy could be to allow prices to break above 0.6350 first and then consider longs on dips. In either way, NZDUSD might be setting up for a potential bullish reversal and ideally prices should say above 0.6189 levels going further. Alternately, since the earlier drop was an impulse, we can expect a corrective rally (3 waves), towards a Fibonacci 0.50/0.618 retracement, if not further. As a common probability in either of the above, NZDUSD is set to produce at least a corrective rally towards 0.6540 if not further. Watch out for a push through 0.6340/50 levels from here to complete a potential leading diagonal structure, as traders prepare themselves to initiate long positions for a potential trend reversal ahead.
Prepared by
Harsh Japee, Technical Analyst.
NZDUSD Chart
MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!
Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.
Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.
MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！
免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。
著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。
