Good morning traders, today we want to show you our long-term bullish analysis on the NZD / USD pair.
🔸As we can see, the price broke up the wedge formation that was active for six years.
🔸It made a strong move to the upside, and had a clear path towards the 0.74000-0.75000 area, which is where it is approaching at the moment.
🔸In this price range, there is a strong supply, since if we analyze the previous scenarios in which the price reached this level, there was always a strong rejection.
🔸Therefore, we can conclude that it is a good level to close the bullish positions, since there are high probabilities of a reaction in the bearish direction.
🔸We do not consider it to be a change in trend, but we can see a corrective movement for several weeks.
🔸Of course there is no certainty of this, and we must consider all the probable scenarios, such as that the demand is very strong and the price generates a very soft or no correction, and continues its upward path towards the next zone.
🔸As we can see, the price broke up the wedge formation that was active for six years.
🔸It made a strong move to the upside, and had a clear path towards the 0.74000-0.75000 area, which is where it is approaching at the moment.
🔸In this price range, there is a strong supply, since if we analyze the previous scenarios in which the price reached this level, there was always a strong rejection.
🔸Therefore, we can conclude that it is a good level to close the bullish positions, since there are high probabilities of a reaction in the bearish direction.
🔸We do not consider it to be a change in trend, but we can see a corrective movement for several weeks.
🔸Of course there is no certainty of this, and we must consider all the probable scenarios, such as that the demand is very strong and the price generates a very soft or no correction, and continues its upward path towards the next zone.