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 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.
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
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