NZDUSD in March 2021 gave a break out from the head and shoulder pattern, providing new lows at 0.69400. The Pair retrieved more than 61.8% of fibb retracement in early May where it consolidated itself in shape of an extension. Falling wedge was formed by NZDUSD which made it go for a dip to its lows from March. On a more diverse note, observing the pair from weekly time frame, after making its highest highs at 0.74628 and lows at 0.69200, these two can be considered as the major supports and resistances under which an extended consolidation and side ways extension can be seen. On monthly and weekly charts these two figures of highs and lows will be deciding the next stop in future for NZDUSD in terms of long term investments. For now getting back to the daily time frame, Kiwi is stuck between its nearest lows 0.69200 and highs 0.71050 which can be considered as an extended correction within the flag pennant and yet a breakout from the aforementioned levels will bring more clarity to the equation. 

BULLISH/ BEARISH OPPORTUNITIES/ CONDITIONS :

The reversal from the major support 0.69200 gave an upward thrust to the kiwi, giving us an indication that the 50% and 61.8% fibb retracement levels will be met and as we can already see that 50%fibb is where the pair provided its weekly closing on friday. So considering 61.8Fibb to be its destination should be taken as a temporary bullish move  because it is for sure that the montly pivot being near to the 61.8% fibb will be its temporary destination. Now as we talk for the bearish conditions, there is 50EMA in the way of its further hawisk swing, while there are chances that the bullish impulse might reach for the upper trend line where our major resistance is i.e 0.71000. This will be the deciding point if a breakout was given above will be taken as bullish continuation targeting the highest high of NZDUSD as our targetted destination. An impulsive bearish reversal - specifically if it broke our major support then we would have entered a dovish rally but do keep in mind that 61.8fibb and 50EMA might provide a slight bearish reversal so dont forget to take a trade on that with 40-60 pips. 

NZDUSD Bullish on a temporary note

Jul 11 2021

3

1