- NZD/USD bears moved early and may be clearing the way for a bullish correction.
- The dollar is stagnant, which is good for commodity FX.
NZD/USD bulls may be about to step into early Asian trade due to trade The deficit fell to a record high. This has seen price move into a key support area and previous lows. However, if the stock market opens on the right foot in Tokyo after Wall Street closes, then we could see the New Zealand dollar move higher. The following chart illustrates such a prospect:
NZD/USD daily chart
The daily chart shows that the price has broken below the trend line, and a reversal may occur in the coming day. However, given the momentum of the price, a support area can be seen first. Having said that, the USD may be on the verge of a bearish correction:
DXY H1 Chart 
NZD/USD H1 Chart
Pattern M is a reversal pattern that sees price moving towards the neckline , or at least a higher correction.
NZD/USD 5 minute chart
Prices probably won’t do anything until Tokyo and given the low Wall Street overnight Volume and volatility, those who trade kiwis can have a bumpy and long journey. However, the 5-minute chart is structured as shown in the chart above, and if the bulls commit, Friday’s correction is likely to follow the aforementioned route.
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Prices probably won’t do anything until Tokyo and given the low Wall Street overnight Volume and volatility, those who trade kiwis can have a bumpy and long journey. However, the 5-minute chart is structured as shown in the chart above, and if the bulls commit, Friday’s correction is likely to follow the aforementioned route.
The information on these pages contains forward-looking statements that involve risks and Uncertainty. The markets and instruments described on this page are for informational purposes only and should not be taken as a recommendation to buy or sell these assets in any way. You should conduct your own thorough research before making any investment decision. FXStreet does not warrant in any way that this information is free of errors, errors or material misstatements. It also does not guarantee that the information is timely. Investing in public markets involves a number of risks, including loss of all or part of your investment, and emotional distress. All risks, losses and costs associated with investing, including the entire loss of principal, are borne by you. The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of FXStreet or its advertisers. The author is not responsible for the information at the end of links published on this page.
Unless otherwise expressly mentioned in the text of the article, at the time of writing, the author is in any stock mentioned No positions are in this article and have no business relationship with any of the companies mentioned. Other than from FXStreet, the author did not receive any compensation for writing this article.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness or suitability of this information. FXStreet and the author shall not be liable for any errors, omissions or any loss, injury or damage arising out of this information and its display or use. Errors and omissions excluded.
The author and FXStreet are not registered investment advisors and nothing in this article is investment advice.
The information on these pages contains forward-looking statements that involve risks and Uncertainty. The markets and instruments described on this page are for informational purposes only and should not be taken as a recommendation to buy or sell these assets in any way. You should conduct your own thorough research before making any investment decision. FXStreet does not warrant in any way that this information is free of errors, errors or material misstatements. It also does not guarantee that the information is timely. Investing in public markets involves a number of risks, including loss of all or part of your investment, and emotional distress. All risks, losses and costs associated with investing, including the entire loss of principal, are borne by you. The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of FXStreet or its advertisers. The author is not responsible for the information at the end of links published on this page.
Unless otherwise expressly mentioned in the text of the article, at the time of writing, the author is in any stock mentioned No positions are in this article and have no business relationship with any of the companies mentioned. Other than from FXStreet, the author did not receive any compensation for writing this article.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness or suitability of this information. FXStreet and the author shall not be liable for any errors, omissions or any loss, injury or damage arising out of this information and its display or use. Errors and omissions excluded.
The author and FXStreet are not registered investment advisors and nothing in this article is investment advice.
