NZD/USD – Uptrend in its Final Stages?
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Dear Traders,
The NZD/USD has been correcting its uptrend over the last few days, but signs are pointing towards a bullish continuation .
This analysis will take a quick look at this currency pair and discuss what to expect over the next trading week.
Uptrend is Approaching its End…
The NZD/USD appears to have formed an irregular flat correction (blue wxy) as part of Wave 4 (turqouise) of its uptrend. Price is currently showing signs of wanting to remain within the uptrend channel (blue), which suggests that a Wave 5 is yet to come.
The daily chart below also shows that no divergence has appeared on the momentum indicators yet, which gives further weight to the scenario that we have not yet seen Wave 5. Price must remain in the trend channel to confirm this analysis.
Currently I don’t expect price to go beyond 0.75 – 0.7550, which could finally signal the end of the long-term NZD/USD range that has been in place since 2015. A strong bearish trend has to develop quickly once the currrent uptrend concludes in order to confirm this forecast. If it does occur, price could fall toward 0.60.
All the best along your trading journey
Hubert
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