- July 7, 2022
- Posted by: Tradingshot Articles
- Category: Forex
The NZDUSD pair hit our target of the last analysis we published following the +5.20% pattern:
That High was in fact formed and rejected on the 1D MA50 (blue trend-line), which has been unbroken since April 14. Technically, the price still trades within the long-term Bearish Megaphone pattern, so highs are best viewed as sell opportunities. Naturally however, a medium-term relief rally is most likely ahead of us as the 1D MA50 is as close to the price as the previous Lower Lows of August 20 2021 and January 28 2022.
As long as the Lower Lows trend-line (bottom) of the Megaphone holds, buy and aim again for a +50.20% rise (0.64400) with an extension of +7.65% (0.65800). The latter can make a perfect contact with the 1D MA200 (orange trend-line), which is intact since April 07.
On the other hand, if the price closes below the Megaphone, take the loss on the buy (small SL, low risk/ high return) and open a sell targeting the 1.5 Fibonacci extension a little over 0.5800.