#NZDUSD Bearish Pennant Pattern
🔸Since October 2022 the NZDUSD pair has been trading inside a Bearish Pennant Pattern, the resistance line of this pattern has been hit 3 times and the support line 2 times and the price is currently aiming to make the 3rd hit to the support line.
🔹Jerome Powell's dovish stance in recent speeches could support the bearish scenario, the pair is currently trading at 0.6948, above the 50 MA (0.6050), if the 50 MA and the support zone at relatively the same price level cracked, the bears can break through the support line of the pattern sending the price down to 0.5879 and with further weakness of the USD, it's possible for the bearish scenario to fully playout pushing the price down to 0.5777 and the strong support at 0.5586 which if cracked, we can see the price go as low as 0.5000.
🔸On the other hand Jerome Powell has also hinted at improving economic conditions, suggesting a potential Fed rate cut despite inflation not yet at 2%. Powell noted easing labor market conditions, moderated growth, and decreasing inflation. Despite lower US inflation figures, the US dollar remained strong which can invalidate the pattern.
🔹If the price breakout above the resistant line of the pattern, the bulls can target 0.6222, 0.6363 and the 200 MA (0.6480), further movement above the 200 MA can completely change the trend aiming up to 0.7317.
Zanzibar Trading
🔹Jerome Powell's dovish stance in recent speeches could support the bearish scenario, the pair is currently trading at 0.6948, above the 50 MA (0.6050), if the 50 MA and the support zone at relatively the same price level cracked, the bears can break through the support line of the pattern sending the price down to 0.5879 and with further weakness of the USD, it's possible for the bearish scenario to fully playout pushing the price down to 0.5777 and the strong support at 0.5586 which if cracked, we can see the price go as low as 0.5000.
🔸On the other hand Jerome Powell has also hinted at improving economic conditions, suggesting a potential Fed rate cut despite inflation not yet at 2%. Powell noted easing labor market conditions, moderated growth, and decreasing inflation. Despite lower US inflation figures, the US dollar remained strong which can invalidate the pattern.
🔹If the price breakout above the resistant line of the pattern, the bulls can target 0.6222, 0.6363 and the 200 MA (0.6480), further movement above the 200 MA can completely change the trend aiming up to 0.7317.
Zanzibar Trading
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