This week we are going analyze NZDUSD pair. The long-term trend on this pair is bearish, if you look from the left side, prices have been trending downwards for a sequence of months since last year. From the chart, prices of the pair bottomed and started trending upwards. Prices have been currently consolidating in the form of a symmetrical triangle as drawn on the charts. On the lower trend line, we find that an indecision candle formed, in the shape of a pinbar. This indicates market indecision between buyers and sellers at a significant near-term support level.
With the formation of a pinbar, we will be watching for chart patterns and candlestick formation for confirmation signals in order to pick a bias on the pair. With the formation of the symmetrical triangle, and based on the price level of the near-term support level, we will hold on for the prices to guide us on whether will be going long or short on the pair. We anticipate a break-out on this pair.