NZDUSD Technical analysis and forecast aims to provide you with the daily and weekly analysis of the NZDUSD currency pair based simply on price action only.
NZDUSD Technical Analysis 8th December 2017
Looking at the weekly chart of NZDUSD below, you can see a few important things that pop up:
- Price is heading down to a major support level or zone
- price has also bounced up from it on 3 prior occasions and now it going down to that level for the 4th time ( you will see this more clearly when you refer to the daily chart)
Switching to the daily chart, we can have a much closer look at the NZDUSD pair and here’s what is popping up at me:
- we have price action confluence happening here:there’s a major support level coming into play seen from the weekly timeframe and then there’s the rising trendline that price did not seem to have significantly broken
- and if you look up, you will see a falling trendline. So price is being constrained within what looks to be a symmetrical triangle pattern so a breakout is imminent:either up or down.
- and if you look again, there also appears to be an inverse head and shoulders pattern forming (bullish chart pattern)
That’s the analysis on the technical but what can make these technical structure fail is today’s non farm payroll data if the data comes out good for the US economy.
If that happens, expect that support level to be broken and price going down.
However, if the non farm payroll data comes out bad for US economy then expect traders to take advantage of the already existing technical structures I’ve mentioned above and with the boost from bad non farm payroll data, drive NZD up.