The NZDUSD pair during the last month gained 0.68%. Until the previous Friday trading session, the sentiment shows that 90% of traders hold short positions. However, we expect a marginal upside move before to start a new bearish leg.
Currently, the Kiwi is running in a long-term sideways triangular structure. This formation calls for a continuation of the previous move. We foresee a marginal upside to the area between 0.6798 and 0.6862. Once the price reaches this area, we expect more declines as a new bearish leg. Our long-term target is in the 0.6453 area. An alternative scenario is a limited bounce in the 0.655 zone; in any case, the long-term objective should remain. If the price soars and closes above 0.6968, our bearish continuation scenario will be invalidated.
Remember that the price is not forced to move as our outlook proposes. The charts released corresponds to an educational application of the Elliott Wave Theory. Comments issued don’t represent an investment recommendation.