Currency
by Alex Davies on November 2, 2018

NZDUSD Analysis – price breaks a long-term downtrend

NZDUSD has been tracing a downtrend for a long time. About a week ago we expected the price to go through a steep decline as it crossed the support line shown on the graph below in yellow. The price did breach the support and it plummeted by 60 pips, but only for a short period. A reversal occurred soon thereafter.

NZDUSD Analysis - price breaks a long-term downtrend

The reversal turned out extremely strong as the price increased by nearly 150 pips. It even helped the price break through the long-term downtrend line shown in black. The breach of this resistance means that a strong buy signal has been triggered. While we still expect a slight pullback and a small decline in the short-term, the long run sentiment is positive and more growth in price is likely in store for the investors.

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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