NZDUSD was in a bearish trend when it tapped the support level and started bouncing back up. Now, it has formed a HH and a HL. This is what gives a clear picture of the upcoming move on the pair. We will look for buys at another retest of the support level. Once market shows us a rejection at the support, we will go in long positions. Another test at the support will create a triple bottom. This pattern reflects a trend change.

There is a descending trendline on the pair. This trendline was breached earlier, for the breakout buys. After the breakout buys had been validated with the opening and closing above of the candles, we wait for the retracement which market did.

After the breakout buys, the market perfectly retraced the golden retracement level of 75-78.6%, with confluence of the support level. We will wait for another retest at this level to go long.

Both the EMA’s are currently in a bearish trend, with a bearish death cross. The recent EMA is the EMA 50, which would confluence with the resistance level. This confluence will be acting as our profit target for the buy positions. There is a higher chance that the EMA 50 is broken and NZDUSD retests the EMA 200 at the resistance level. This will act as our profit target.

Market is restoring back from the bearish and over-sold region of the oscillators. Currently, RSI is at 48 and CCI is at -18. Both of them are close to the neutral level. Once market breaks the neutral levels, the bullish pressure will start building up. If market takes another dip to retest the support, then we may see an over-sold situation on the oscillators.

Technically, NZDUSD is a strong candidate for a long position. Usually when markets form a structure like the one on NZDUSD, it tends to strongly bounce from the support.

NZDUSD buys

Oct 07 2021

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