NZDUSD Forecast And Technical Analysis

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NZDUSD Forecast Update And Follow Up

Hi Traders! NZDUSD forecast and technical analysis is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available! This analysis will be based on price action trading (if you want to learn about price action trading, you can watch this video here).

NZDUSD D1(Daily) Chart Analysis – Key Resistance Zone, Bearish Divergence, Volumes Indicator

On the daily chart, we have a key resistance zone that has formed based on the psychological level 0.67, the 161.8% fibonacci expansion level of the first wave at 0.68190, and the 61.8% fibonacci expansion level of the second wave at 0.68351. The price which was moving higher reached this key resistance zone. In addition to this, the price has created a bearish divergence that has formed between the first high that has formed on 10th June 2020 and the second high that has formed on 31st July 2020 based on the moving averages of the MACD indicator. Also, the volumes are dropping based on the Volumes Indicator. We may consider these as evidences of bearish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bearish view.

NZDUSD Forecast And Technical Analysis

 

 

NZDUSD H4(4 Hours) Chart Analysis – Bearish Convergence, Uptrend Line Breakout, Bearish Hidden Divergence

On the H4 chart, we had a false break with the bearish divergence that has formed between the first high that has formed at 0.66907 and the second high that has formed at 0.67148 based on the MACD indicator. The price then moved lower and broke below the last low at 0.66193 thus creating a bearish convergence for us. Generally, after a bearish convergence, we may expect pullbacks and then further continuation lower. Currently, it looks like the pullback that we are looking for is happening. In addition to this, the price has also broken below an uptrend line and retested the breakout, we may consider these as evidences of bearish pressure. Also, we have a bearish hidden divergence that has formed between the first high that has formed at 0.67148, and the second high that has formed at 0.66727 based on the histogram of the MACD indicator which we may consider as another evidence of bearish pressure. So based on all this, my short term view is bearish here and I expect the price to continue lower further.

NZDUSD Forecast And Technical Analysis

 

Technical Analysis & Forecast Summary

NZDUSD D1(Daily) Chart Analysis

  • Key Resistance Zone, Bearish Divergence, Volumes Indicator

NZDUSD H4(4 Hours) Chart Analysis 

  • Bearish Convergence, Uptrend Line Breakout, Bearish Hidden Divergence

 

Trading Tips

It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.

Also don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.

You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.

Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?

I invite you to join me in my live market analysis, on daily basis, and improve your trading with us.

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Also, you can get one of my strategies free of charge. You will find all the details here

 

If you have any further questions, don’t hesitate to drop a comment below!

 

Happy Trading!

Yordan Kuzmanov
Chief Trader at the Traders Academy Club

 

 

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