Intraday technical levels and trading recommendations for NZD/USD for February 8, 2018
February 8, 2018 6:22 am
Daily Outlook
In July 2017, an atypical Head and Shoulders pattern was expressed on the depicted chart which indicated upcoming bearish reversal.
As expected, the price level of 0.7050 failed to offer enough bullish support for the NZD/USD pair. That’s why, a further bearish decline was expected towards 0.6800 (Reversal pattern bearish target).
Evident signs of the bullish recovery was expressed around the depicted low (0.6780). The inverted Head and Shoulders pattern was expressed around these price levels.
The price zone of 0.7140-0.7250 (prominent Supply-Zone) failed to pause the ongoing bullish momentum. Instead, a bullish breakout above 0.7250 was expressed on January 11.
That’s why, the current bullish movement extended towards the price levels of 0.7320 and 0.7390.
A quick bullish movement was expected towards the depicted supply zone (0.7320-0.7390) where evident bearish rejection and a valid SELL entry is still expected.
On Friday, a bearish engulfing daily candlestick was expressed. This enhances the bearish scenario initially towards the price levels of 0.7230 – 0.7165 where the price action should be watched for a possible bullish recovery.
Our suggested SELL position around 0.7390 is already running in profits. Bearish fixation below 0.7160 allows further bearish decline towards 0.7090 while S/L should be lowered to 0.7260 to secure some profits
The material has been provided by InstaForex Company – www.instaforex.com
Daily Outlook
In July 2017, an atypical Head and Shoulders pattern was expressed on the depicted chart which indicated upcoming bearish reversal.
As expected, the price level of 0.7050 failed to offer enough bullish support for the NZD/USD pair. That’s why, a further bearish decline was expected towards 0.6800 (Reversal pattern bearish target).
Evident signs of the bullish recovery was expressed around the depicted low (0.6780). The inverted Head and Shoulders pattern was expressed around these price levels.
The price zone of 0.7140-0.7250 (prominent Supply-Zone) failed to pause the ongoing bullish momentum. Instead, a bullish breakout above 0.7250 was expressed on January 11.
That’s why, the current bullish movement extended towards the price levels of 0.7320 and 0.7390.
A quick bullish movement was expected towards the depicted supply zone (0.7320-0.7390) where evident bearish rejection and a valid SELL entry is still expected.
On Friday, a bearish engulfing daily candlestick was expressed. This enhances the bearish scenario initially towards the price levels of 0.7230 – 0.7165 where the price action should be watched for a possible bullish recovery.
Our suggested SELL position around 0.7390 is already running in profits. Bearish fixation below 0.7160 allows further bearish decline towards 0.7090 while S/L should be lowered to 0.7260 to secure some profits
The material has been provided by InstaForex Company – www.instaforex.com
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