For Traders

Analytical Reviews

Trend line

25.01.202117:38 Forex Analysis & Reviews: NZDUSD remains vulnerable to a pull back

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

NZDUSD is trading at 0.7190 still inside the upward sloping channel created back in March. As we explained in previous posts, at current levels we prefer to be neutral if not slightly bearish because there are signs of an important top on the way.

Blue lines - bullish channel

Red lines - bearish divergence

The RSI is showing bearish divergence signs. This is a warning and not a reversal signal. We expect to get a reversal signal soon. Breaking below the recent low at 0.71 will be an important bearish signal that will most probably lead to price breaking out and below the bullish channel. We at least expect price to test the lower channel boundary around 0.6990-0.70.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.