On the weekly time frame, Kiwi stepped itself out of the bullish impulsive wave structure and went for a bearish correction to have an exit from the overbought conditions on the relative strength index. If we talk about a higher degree of bearish correction, well no, it has not yet completed and to be more vivid - major wave c hasnt even yet initiated or it wouldve broken multiple major support levels. On the weekly note, NZDUSD stands at strong demand zone with probability of bullish reversals before falling any further. Exponential moving average 50 and 200 both have been underlying as a support and providing a pull back. Though the market broke its previous weekly and daily major price action level i.e 0.6920 and went till 0.68768 which is our monthly support. Coming down to our daily chart, NZDUSD provided us with a decisive breach out from the support 0.6920 - with 50 pips dovish move. But for positioning our bearish trades, we need an impulsive bearish closing below as a confirmation that the market has shifted to the bears court of ruling. Same would be the case with our resistance near exponential moving average 50 and 100 i.e 0.70480, which needs to be broken out to confirm if there were any signs of continuation of bullish rally. 

BULLISH AND BEARISH POSSIBILITIES / CONDITIONS :

0.6960 and 0.70200 is almost a no trade zone for that is an ambiguous area and im pointing that on four hourly chart where we have a correction of minor degree being completed for now and we are expecting a move to the downside with our target destination at 0.68823. Wait for a closing below our daily price action as a legitimate confirmation to adjust our selling trades towards the above mentioned TP. An impulsive bullish closing above 0.70200 would be suggesting a stronger pull back towards our daily highs i.e 0.71040 - which then will be the deciding point for us to analyze the structure further.

NZDUSD D1

Jul 25 2021

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