The NZDUSD closed the previous week in positive territory and advanced its rally towards strong level from mid-June at 0.7132 on Friday. The pair was up 0.35% on the day at 0.7128. The absence of macroeconomic data releases- made the market environment depend heavily on the safe-haven USD on Thursday and Friday which caused the US Dollar Index (DXY) to drop to a fresh four-week low below 92.20. The drop in U.S dollar boosted NewZealand dollar with strong bullish momentum making NZDUSD break above some major levels 0.70660 and 0.71110. The pair is hovering above our main upper trend line and has taken an impulsive exit from the ichimoku cloud, crossing Senkou Span A - which was our deciding point. Another major breach with a hawkish stance above our 50% fibb retracement level while missing 61.8% on daily time frame just by a few pips, indicates that NZDUSD has entered the bullish trend. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

On the intraday weekly time frame, NZDUSD has broken major weekly resistance 0.70660 and 0.71110, which indicates that the pair is heading again for the second time towards monthly resistance 0.72413 and 0.73149 most probably. From the current market structure from interday time frames, daily and four hourly, the relative strength index are trading in the overbought zone and calls for a short term bearish correction before exceeding for further gains. The elliot wave pattern in four hourly and daily are pointing towards a dovish stance towards our trend line 0.71110 and maybe 0.70700 to complete "ABC" wave as a reversal. A bullish closing above the aforementioned levels after the completion of bearish correction is suppose to be considered as a good opportunity for executing Buying positions. 

NZDUSD

farhan fazal

Sep 05 2021

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