NZDUSD completed a pattern near 0.68 last week and declined 100 pips since then.
Elite Zone member already used this sell zone to generate 100 pips last week but it is still relevant if we are looking at this setup as a two combination setup:
1. – The first pattern is a that its PRZ is shown as red box near 0.68, just below the 200 line. This already reached first target level and its secondary target zone is near 0.66.
1. - Completion was near 0.68. Target 1 was reached and Target 2 is near 0.66 (First Target Zone in the chart).
2. – The is the pattern that completes near 0.64. It hasn't formed into a complete pattern yet but for those of you who trade harmonics, probably see the potential Aggressive C selling opportunity here – Selling 0.68 (the C point) and anticipating that the price will continue lower towards D point near 0.64.
One important thing to pay attention to in regards to the two potential scenarios mentioned above – The price is still above two important daily Lines (50 days and 18 days) that can act as support and prevent the price from reaching the target zones.
Considering that the price is also inside a 100 pips daily structure zone (blue) that may turn to a buy zone if USD will show some weakness signs there's definitely a chance that we will see $NZDUSD rally from 0.665 this week. In such case, the target zone should be a re-test of the PRZ and the daily 200 line near 0.68-0.685 (there it will present another opportunity with inside the PRZ).
That will be the scenario for the week for you Dollar bears out there (shown in green and red arrows in the chart)
Tomer, The MarketZone
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Will update tomorrow on two potential bullish setup in my Weekly Markets Analysis