Currency
by Alex Davies on November 28, 2018

NZDUSD Analysis – expect more growth despite the decline

We considered NZDUSD about ten days ago when we took a bullish stance on the currency pair and expected it to go up in price. While the price has declined after that statement, we still maintain our outlook as the technical analysis is suggestive of a bullish setup. It might just be delayed, but with patience, we think that it is very likely that the price will pick up.

NZDUSD Analysis - expect more growth despite the decline

Currently, the price is in the bearish correction period. While we maintain our view that the current decline is still a correction, it is of a larger scale than we expected. Nevertheless, it follows the logic of technical analysis. The price is currently tracing a flag shown on the graph above with black lines. We expect the price to breach the upper line to trigger a bullish breakout. On the other hand, if the price drops below the lower line of the flag at level 0.678, we will change our outlook for the currency pair and expect more decline. For now, even though the price is below the horizontal resistance at 0.685 shown with an orange line, we still expect more growth to follow.

By Alex Davies

Alex Davies is a long-time trader with a background in statistical analysis. Davies has worked as a financial analyst since 2014 and has been writing technical analyses for various publications since 2015. Davies writes on different financial instruments including stocks, cryptocurrencies and currency pairs.

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