Weekly Chart
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The daily chart shows an ascending triangle or another rising wedge, which would add short-term bearish signals to the long-term bearish outlook. However, we lean in favor of the triangle over the wedge, as it seems that the 0.7226 level has established strong resistance. Based on the Fibonacci Fan Arc, the pair could encounter a wave down soon, and it could lead to attacks at levels of significance.
Daily Chart
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The loss of volatility has led to inconclusive signals by the Ichimoku indicator on the daily chart, but a tankan-sen Kijun-sen bullish crossover stands against our expectations. The parabolic SAR and several other momentum indicators still suggest some bullish potential, meaning that our scenario is anything but sure. While Monday shows no events on the economic calendar, the RBNZ Financial Stability Report could shake markets on Tuesday 20:00 GMT, leaving more predominant fundamental pressures for Wednesday when a decent set of high and medium impact economic data comes out.
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