NZDUSD has been in a downward trend since the beginning of the year and on Tuesday (11/09) the pair reached 0.6500, losing 950 pips since January. From the middle of May, the pair moves in the channel, quite nicely respecting its support and resistance (blue dotted lines). Yesterday’s quotes set the minimum of this year and the course of today’s session indicates attempts to start an upward correction.
The bullish candle H4 had a range of 50p and undoubtedly we saw in it influence of the positive news from the US that Mnuchin will manage planned trade talks between the US and China and introducing additional tariffs for an amount of 200 billion $ is not a foregone conclusion. The “commodity” pairs from the antipodes are particularly sensitive to information about China and the USA, that is their main export markets.
Bullish divergences were created on charts D1 and H4, supporting the growth scenario according to the PA+MACD strategy. The nearest resistance is in the vicinity of the last peak, ie 0.6600-15. If it is defeated, the pair may go to the next resistance which is the upper edge of the previously mentioned bearish channel.
