1D TF - we can observe a downtrend that initiated in October of 2018 and we can see an uptrend from the end of March of this year.
On June 18th the bulls made an attempt to break the 61.8 Fibo Correction from 2018 to the upside and failed.
4H TF – shows that the price has broken the 23.6 Fibo correction level down, we also see a head and shoulders formation, and the price has intersected the signal neckline down as well.
Indicators: The price broke the 9 EMA down on the morning of the 25th and the price is currently traveling below the 9 EMA. This morning we can observe a spike and a strong rejection of higher prices. Parabolic SAR is above the price and MACD histogram is showing us that volume is growing and the signal lines are separating.
As a result, Short positions look to be favorable with target areas 1.69207 (38.2 Fibo) and possibly even lower to 1.68012 (50% Fibo correction)
Fundamentally, yesterday New Zealand’s Trade Balance Report reading came in at better than expected. This morning the interest rates were left unchanged at 1.5% with some hints that interest rates may be lowered in the future. This could be the bearish driving force for the pair.
Also keep an eye out on Fridays release of Euro zones preliminary CPI report.
We expect that the market will be volatile at end of the week due to trade war negotiation talks between the US and China at the G20 Summit.
On June 18th the bulls made an attempt to break the 61.8 Fibo Correction from 2018 to the upside and failed.
4H TF – shows that the price has broken the 23.6 Fibo correction level down, we also see a head and shoulders formation, and the price has intersected the signal neckline down as well.
Indicators: The price broke the 9 EMA down on the morning of the 25th and the price is currently traveling below the 9 EMA. This morning we can observe a spike and a strong rejection of higher prices. Parabolic SAR is above the price and MACD histogram is showing us that volume is growing and the signal lines are separating.
As a result, Short positions look to be favorable with target areas 1.69207 (38.2 Fibo) and possibly even lower to 1.68012 (50% Fibo correction)
Fundamentally, yesterday New Zealand’s Trade Balance Report reading came in at better than expected. This morning the interest rates were left unchanged at 1.5% with some hints that interest rates may be lowered in the future. This could be the bearish driving force for the pair.
Also keep an eye out on Fridays release of Euro zones preliminary CPI report.
We expect that the market will be volatile at end of the week due to trade war negotiation talks between the US and China at the G20 Summit.