This week there are relatively less risk events in the currency market - the only one worth highlighting is RBNZ Rate Statement happening on Thursday morning here in Singapore.
Here are a few reasons why I'm expecting the Kiwi to weaken in the near term -
1) We are currently in a 6th swing, thus we are expecting one more move lower since this is not a complete swing cycle; 2) Price has met the minimum fibonacci requirement for an expanding flat structure; 3) Price is currently at the top of the bearish channel; and 4) On the lower timeframe, price is also showing signs of exhaustion.
With these simple technical analysis, I have a stronger bias in looking for shorting opportunities on NZDUSD rather than longing it.
However, do take note that this are only my personal views and I may jolly well be wrong too :P
So trade according to your plan and manage your risk ALWAYS!
**Quiz - what other information or 'edge' can we get to enhance our analysis on the NZD?
Perfect explanation.
From my side, the move from B to C looks like a straight line. Straight lines are very rare in the market. Therefore even if the NZD is set to rise in long-term analysis, the pair is bound to retrace down.
KarYong
⋅
@AleksandrLombrozo, yup! the downside looks more probable than the upside for now
From my side, the move from B to C looks like a straight line. Straight lines are very rare in the market. Therefore even if the NZD is set to rise in long-term analysis, the pair is bound to retrace down.