Monthly Chart
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After applying Gann analysis, we detect several areas of significance, which gain our trust with historical confirmations. Firstly, point A timed early January - late February could provide some pressures when the time comes, meaning that the rate could possibly stick to the upper trend-line of the channel for now and take a more prominent dip inside A. The area is set by the Fibonacci Fan Arc, Fibonacci 50% Retracement of the 2009-2014 surge and the Gann Angle and Gann Period of the current dip all crossing inside of this area. The same indicator crossover made NZD/USD cut its losses and start a wave north in July 2015, giving proof that the region might indeed be of significance. The area B has the same characteristics as A, but without the Retracement, which makes us believe that this is a secondary target and we will shift our focus there in case A is missed.
Daily Chart
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The daily chart confirms our scenario of a sticky upper trend-line of the senior channel. The daily chart shows that NZD/USD has been trading inside of a channel down which coincides with the upper trend-line of the superior pattern since August. We see no signs of its weakness for the time being, suggesting that it could enter A as we expect. The pair is currently on its fifth wave inside the junior pattern, which could mean that an attack at the upper boundary could be unsuccessful and tests of it could be delayed. Two high-wave candles show a balance in supply and demand, pointing to uncertainty and suggesting that the market might not make sharp movements. Spinning tops suggest bulls losing interest.
Aggregate Technical Indicators
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The US GDP data and consumer confidence as well as the RBNZ Financial Stability report will be the main shakers of markets on Tuesday, awaiting an economic announcement filled schedule on Wednesday, which could lead to either falsely or conclusively broken technical levels.