From the technical views:
1. From the daily point of view, the price has created a breakout to the upside but closed back below the daily resistance, this can consider as a fake breakout. After the fake breakout, we always expect an equally low and retest, because this a sign for the formation of the HNS pattern. As you can see, the price was completed the equal low, the next is waiting for the retest before opening a short position.
2. Moreover, the price also created an overextended W pattern on the daily timeframe, we can expect the price will retest the middle of the W pattern if the HNS pattern will arise to us.
From the fundamental views:
1. Bearish bias on NZD in the long term, but bullish on NZD in the short term.
2. But keep in mind, in the new report, they are closing around 2k of the long and added around 1.1k of the short positions at the moment, net position form 2.4k become -845, which means they start selling NZD, and NZD will be weak after the strong move to the upside.
How to approach NZDUSD?
1. Waiting for the right shoulder form, after that switch to the lower timeframe looking for the short opportunity
2. Short at the moment is not a good idea, because the lower timeframe still indicates a bullish market, it can easily move to the upside since the market keeps creating HH and HL on the lower timeframe.
The result might not follow my analysis, this analysis is based on the TA & FA perspectives.
Comment down below let me know your view on NZDUSD or which pairs you would like to me analyze in the future.
1. From the daily point of view, the price has created a breakout to the upside but closed back below the daily resistance, this can consider as a fake breakout. After the fake breakout, we always expect an equally low and retest, because this a sign for the formation of the HNS pattern. As you can see, the price was completed the equal low, the next is waiting for the retest before opening a short position.
2. Moreover, the price also created an overextended W pattern on the daily timeframe, we can expect the price will retest the middle of the W pattern if the HNS pattern will arise to us.
From the fundamental views:
1. Bearish bias on NZD in the long term, but bullish on NZD in the short term.
2. But keep in mind, in the new report, they are closing around 2k of the long and added around 1.1k of the short positions at the moment, net position form 2.4k become -845, which means they start selling NZD, and NZD will be weak after the strong move to the upside.
How to approach NZDUSD?
1. Waiting for the right shoulder form, after that switch to the lower timeframe looking for the short opportunity
2. Short at the moment is not a good idea, because the lower timeframe still indicates a bullish market, it can easily move to the upside since the market keeps creating HH and HL on the lower timeframe.
The result might not follow my analysis, this analysis is based on the TA & FA perspectives.
Comment down below let me know your view on NZDUSD or which pairs you would like to me analyze in the future.