NZD/USD set for slight correction

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 36% 36% 0.00%
Shorts 64% 64% 0.00%
Indicator 4H 1D 1W
MACD (12; 26; 9) Buy Buy Sell
RSI (14) Sell Sell Neutral
Stochastic (5; 3; 3) Sell Sell Sell
Alligator (13; 8; 5) Buy Buy Sell
SAR (0.02; 0.2) Buy Buy Buy
Aggregate

Monday's trading session was marked by a fall of the Kiwi against the US Dollar. During the early hours of this trading session, NZD/USD managed to find support and rebound from the 200-hour SMA at 0.7225. Subsequently, it broke successfully through the 20-, 55- and 100-hour SMAs and the weekly PP at 0.7248. Downside risks, however, prevailed, setting the Kiwi for another fall. By and large, the pair is expected to resume a wave upwards and test the upper boundary of the symmetrical triangle pattern. In case this scenario fails to materialize, the 200-hour SMA at 0.7227 might be regarded as the bottom limit confining the pair during the following 24 hours. The failure to form a distinctive wave up suggests that a breakout from the triangle may occur in this trading week.

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