- April 13, 2022
- Posted by: Tradingshot Articles
- Category: Forex
The NZDUSD pair has been trading within a long-term Channel Down since the start of 2021. Our last call on this pair was a buy signal and our 0.7000 target has been hit:
The price broke below the Lower Lows trend-line, creating a small divergence and we have to re-adjust our projected Fibs. As you see, every Lower High has been near the 0.786 Fibonacci retracement level, which was also the case for the last Lower High of April 05. The recent Lower Low however broke the -0.236 Fib extension sequence as the price marginally broke below the Channel Down.
Regardless of that, the price is still a solid sell signal at the beginning of a new selling sequence. The 1D MA50 (blue trend-line) broke today, giving the final confirmation for a bearish break-out. Our target is the 0.6530 Low. Traders seeking more risk on the long-term may even target the previous -0.236 Fib extension sequence at 0.63670.