NZDUSD: Daily possibly Ending Correction

NZDUSD has been in correction on the weekly since August 2015 after a major downtrend unfolded until then. This correction did not run up, instead it moved sideways with the Momentum indicator crossing above 0 on the weekly (indicating a major correction.) The daily chart didn't prove to trade well while this correction has been going on, many breakouts fail in this market phase and the trend trader needs to stay away until the next possible breakout tirggering a new trend shows up.

This could be the case now, after we saw prices trying to breakout of the upper resistance of this weekly sidemove and failed two weeks ago, we saw increasing weakness coming into this market with a new fractal sell signal forming. If price hits the low of that fractal a short position would be triggered and new lows could be possibly. Let's see if that is the one already...

Order cancelled:

Order cancelled since price exceeded the old high (fractal). That means signal invalidated.