The chart shows us how in this long range that continues from more than a month, two bearish engulfing candles have appeared.
In addition, the extension of volatility has formed the classic shape of the megaphone in trading. If down-breakout occurs, this will be the signal for a strong bearish trend.
After a bearish fast movement in the last couple of months, price level has reached an important demand zone.
While waiting in next days for a build-up to consolidate, there are good opportunities to see the pound price recover.
The price has reached the 0.74 level. Very important psychological threshold, and site of several noteworthy reversals over the last 15 years. If this resistance is broken upwards, the Kiwi could face an endless space to rise. If it were to reverse more moderately, it could return to the 0.64/0.68 area.
30% rising from Coronavirus cirsis of March 2020. Weak US Dollar. New Zealand competitive policy. End of the Year.
Sorry Buyers, but... where is your liquidity?
Along and with this pair's ascneditg trend channel, a 'megaphone trading pattern' has formed on the same rising upper edge side. It shows its lower point on a perfect angle corresponding to the Resistance/Support of 0.67500
The rise started last March (2020) has impacted both on a very strong fundamental that has existed since 2016 (first support and then transformed into resistance), and on a bearish trendline also originated for three years now. At this point, an important reversal in medium-long term is expected. Note that this feature analyzed on NZDUSD has several identical...
