NZDUSD - The USD Will Continue To Fall!Analysis:
Upwards trend (bullish confluence factor)
Retest of an old support level (bullish confluence factor)
61.8% fib retracement level (bullish confluence factor)
Upwards trendline touch (bullish confluence factor)
NZD is the 5th strongest major currency whereas the USD is the 3rd strongest major currency (bearish confluence factor)
2K short position increase for the NZD (bearish confluence factor)
8K short position increase for the USD (bullish confluence factor)
Comments:
Despite the strength of the US, the USD has been pretty bearish for a while now and it looks as if this could continue. We're pulling back into a strong area which we expect to hold as resistance for the DXY, meaning that we could then see a continuation to the downside which in turn would favour our idea on NZDUSD. Whilst we don't have all of the confluences pointing to bullishness, we still have the majority showing bullish signs. With the confluences we have on NZDUSD along with the technicals we have on the DXY we expect to see the USD continue its bearish move to the downside, pushing price higher on NZDUSD. This is what gives us our bullish bias.
Stay Safe - The JPI Team
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Disclaimer:
This does not constitute as financial advise. We are not responsible for any monetary loss that you endure. Trading is hard to be profitable with and we take losses just like everyone else does too. Our ideas won't always be correct which is why we urge you to always do your own analysis first before entering into the market but please feel free to use our analysis to assist you with yours.
