Let’s take a look at the NZD/USD pair which looks ready for bearish continuation, but is still only flirting with fresh lows on the year.
We had 3 bearish continuation signals 1 from before the FOMC’s announcement, and 2 after. Still price is only flirting with new lows on the year, and the market seems tentative, not ready to continue lower ahead of the NFP. If price holds below 1.28, the bias is bearish, and a report that is in-line with expectation should push NZD/USD lower into new lows. A break above 1.28 ahead of the NFP opens up a near-term bullish swing, but the bias is bearish or neutral below 1.29. Above 1.29, we might have a bullish correction ahead if the NFP is in-line with expectations.
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