According to our analysis on NZDUSD published on 25th July, we anticipated that On the weekly time frame, Kiwi had 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. We also mentioned that If we had 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. NZDUSD stands at strong demand zone with probability of bullish reversals before falling any further. Also in weekly time frame - exponential moving average 200 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. We expected the market to provide us with a temporary dive towards our major support zone at 0.69220 and it did actually but didnt break the low so we are changing our opinion towards favoring the hawks for now as long as the market keeps itself consolidated above the aforementioned level. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

From the current market scenario in daily, we have the kiwi standing above our intraday exponential moving averages 8, 13 and 21 but unfortunately still below our exponential moving averages 50 and 200 which provided the bearish momentum to NZDUSD and drove it towards 0.69620. We were expecting the market to retest our upper trend line under four hourly timeframe and a bullish fractal confirmation above this level would become an indication for the hawks to take over, yet again until 0.71130. For now the market is under the consolidation range again and would suggest not to take any positions until we get fractal confirmation. 

NZDUSD D1

Aug 01 2021