NZDUSD DAILY ANALYSIS

Jan 27, 2019

On on weekly timeframe you'll see that that the pair has been ranging between 0.66500 & 0.68600 (210 pips) leading for the pair to been consolidating over the past 3 weeks. We have a monthly key level in which the pair has respected and recently however we deemed to have a false breakout in December which reacted off a weekly trendline (Upper descending pink trend line) where sellers pushed the price back into the consolidation zone. Leading into the end of last weeks closure we had a bullish close to the week with a bullish engulfing candle. However, let's not get over excited and risk our life savings on continued bull runs in the immediate upcoming. The pair has two significant key levels in which needs to test and close above (Monthly KL and Weekly Trendline before this occurs as not to forget we are still ranging in sideways movement. A potential double top has began to form with a slow down of momentum on last weeks closure with a H4 doji. This could push price back down to daily physiological key levels of 0.67000. Keep a close eye going into the Asia session for H4 closures underneath our monthly key level 0.68600. Don't forget even though we are moving sideways and the price is riding the moving averages, there is still a lot of opportunities to grab pips from this pair.