From Investor to Scalper – series of studies created in cooperation with broker BDSwiss, in which we take a financial instrument and the analysis includes a detailed look at the value from the monthly chart and ending with H4/M30.
NZDJPY after lasting since January 2015 declines in June last year reached a very important support around 69.00 coinciding with level of momentum 50% Fibonacci correction of the earlier six years of growth, where was demand response. Rejection of this level resulted in increases which did not last too long, because from two months we again observe advantage of bears.
In result of recent increases market reached resistance area, where was supply-side response.
Looking at the daily chart we see that as a result of the ongoing from 30 January declines market broke local support at 80.45. In that moment was established a new, lower low which could argue for continuation of declines in near future.
Before this happens we expect a re-test of already mentioned 80.45 level from the bottom (as resistance). Its rejection could open way to declines in level around 77.80.
On H1 chart we can observe that market from 6 March moves in a consolidation. As a result of ongoing growth on Friday we arrived in vicinity of local resistance zone coinciding with the measuring of 61.8% Fibonacci correction of the earlier declines, where today there was supply-side response. It would seem, therefore, that we could in near future expect return to declines.
However, if the current resistance was defeated on the way to the aforementioned level of 80.45 is another local resistance 79.96 which is the upper limit of consolidation.
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