NZDUSD on the verge of magnificent reversal

NZDUSD on the verge of magnificent reversal

By examining the daily chart of NZDUSD pair, we will see the following signals that argue us to be bearish over short-term basis:

*Yesterday’s shooting start candle that was drawn after re-experiencing the strong resistance levels of 0.7330.

*Yesterday, MACD has overlapped negatively for the first time since February 08, 2017, while February crossover sent it strongly to the downside after forming a pin par the day before.


*Histogram of MACD came below (0) level for the first time since February 2017.

*Vortex indicator –trend indicator- is s showing a signal of uptrend weakness for the first time since May 16, 2017

The above-mentioned negative catalysts offer fresh sell entries for NZDUSD pair; noting that the weekly resistance resides at 0.7375 and stop loss should be placed above it.  

 

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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