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NZDUSD must reclaim 0.7107 to lighten the bearish bias

Wednesday, April 25, 2018 2:14 PM GMT

The overall pressure remains to the downside while all short-term setbacks to the upside were selling opportunities for the bears.

According to the daily timeframe, the pair lost easily the 200 SMA where many traders were expecting a kind of bounce. However, it continued lower and violated the 50% Fibonacci level after a short-term reaction. It is currently flirting with the 127% Fibonacci extension level and trying to hold. Major supports are the 61.8% and 161.8% Fibonacci levels but lower. MACD and Stochastics remain very bearish.

Daily

Heading to the hourly timeframe, the pair is creating the first important positive MACD divergence. Usually, the second or even better the third divergence is stronger than the first one. Overall, the bias remains strongly bearish. The bulls must reclaim the 0.7107 level to target at 0.715 area as noted.

Hourly

(EMA = Exponential Moving Average, SMA = Simple Moving Average, 5EMA = Blue, 21EMA = White, 200SMA = Yellow)

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.

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