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NZD/USD has formed an Ascending Broadening Wedge pattern on the 1H chart. The pattern has 53% quality and 90% magnitude in the 121-bar period.
The pattern started when the pair bounced from 0.7862 and after testing pattern's resistance band at 0.8006 and 0.8055, it has slowed down at around 0.8000 where the pair is currently trading. Technical indicators on aggregate do not suggest any clear emerging trends on 4H and 1D time horizon future, but the Stochastic indicator on 1H and 4H time horizons suggest that the pair will follow pattern's trend and will appreciate further. Long traders could set the first target at the 20th of July peak at 0.8036. If this level is breached, next target would be at recent patterns' resistance test level at 0.8055, 3rd of July peak at 0.8066 and July high at 0.8076.
Technical indicators on aggregate on 1H outlook point at depreciation of the pair. The SWFX market sentiments shows that 60% of the traders anticipate such development as well. Short traders should focus on the current level of 0.8000 which seems to be a very strong psychological level. If this level is breached, next targets might be at the SMA200 at 0.7970 and 19th of July low at 0.7925.
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