This week we are going to follow up on the NZDUSD pair, mainly based on the weekly analysis we did back in mid-February. The NZDUSD pair seems to have taken a ranging motion. It no longer consolidates to form a symmetrical triangle but has been bouncing between the resistance and support level as captured on the chart.
Price is currently sitting at the support level and our take as price action traders is to wait for price to guide us, whether the bulls will have their way and take the pair up or will the support level will finally be broken giving way to further bearish momentum?
From our previous weekly analysis of the Gold vs USD, price had been on a bullish trend which later was resisted on the formation of a pin bar. The bears further took over the market with a strong bearish candlestick. In the following three weeks as shown from the charts, the bulls resisted the bearish momentum and we see some bullish move. However this did not hold grounds for long as last week the bears regained control of the market as indicated by the strong bearish engulfing candle, which engulfed the last three bullish candles.
Should this pair break below the ‘test limit’, we will be looking to go short on the pair, with our targets aimed at the ‘Near-term support level. Until we have this confirmation, we hold to our cards and not do a thing.