*** "Bearish RSI divergence" should read "Bullish RSI divergence"
TECHNICAL:
Reason 1:
- Long term Falling wedge, starting 20/11/2017 formed/forming
- 3 touches of upper trend line, 4 touches of lower trend line with 2 consecutive rejection/false break candles on the 3rd touch (29/05/2018 + 30/05/2018)
- Falling wedge is a bullish reversal pattern, the 2 consecutive rejection candles on the lower trend line indicate to me a possible breakout to the upside soon
Reason 2:
- Possible inverse Head and Shoulder pattern formed at the bottom of the falling wedge.
- The "head" of the formation touches the 61.8 fib re-tracement of the uptrend from 24/06/2016 to 27/07/2017.
- The "head" of the formation also comprised of the two rejection/false break candles
Reason 3:
- Price moved into + was rejected from a strong long term Support/Resistance zone.
- Price within this zone used to act as resistance, however as of April 2017 this area has reversed, and acted as support every time price has moved into it
Reason 4:
- Bullish RSI divergence seen on the Daily chart
-Lower lows seen within the falling wedge pattern are printed as higher highs on the RSI
FUNDAMENTALS:
- Ongoing trade dispute between China and US has hit the Asian markets badly including the Japans Nikkei 225, with no sign of an agreement I believe this may continue to provide weakness for the Japanese Yen, subsequently strengthening the New Zealand dollar.
**Mainly going off Technical analysis on this trade,
-Appreciate any thoughts, comments. Constructive criticism only please, thanks for reading.
James
TECHNICAL:
Reason 1:
- Long term Falling wedge, starting 20/11/2017 formed/forming
- 3 touches of upper trend line, 4 touches of lower trend line with 2 consecutive rejection/false break candles on the 3rd touch (29/05/2018 + 30/05/2018)
- Falling wedge is a bullish reversal pattern, the 2 consecutive rejection candles on the lower trend line indicate to me a possible breakout to the upside soon
Reason 2:
- Possible inverse Head and Shoulder pattern formed at the bottom of the falling wedge.
- The "head" of the formation touches the 61.8 fib re-tracement of the uptrend from 24/06/2016 to 27/07/2017.
- The "head" of the formation also comprised of the two rejection/false break candles
Reason 3:
- Price moved into + was rejected from a strong long term Support/Resistance zone.
- Price within this zone used to act as resistance, however as of April 2017 this area has reversed, and acted as support every time price has moved into it
Reason 4:
- Bullish RSI divergence seen on the Daily chart
-Lower lows seen within the falling wedge pattern are printed as higher highs on the RSI
FUNDAMENTALS:
- Ongoing trade dispute between China and US has hit the Asian markets badly including the Japans Nikkei 225, with no sign of an agreement I believe this may continue to provide weakness for the Japanese Yen, subsequently strengthening the New Zealand dollar.
**Mainly going off Technical analysis on this trade,
-Appreciate any thoughts, comments. Constructive criticism only please, thanks for reading.
James
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.