Today in order to keep borrowing costs low and to ensure credit flows to corporations and state and local governments, the Fed has launched an unlimited purchase of Treasury papers…
The market started to sell the USD, thanks to that other currencies, strengthened slightly. Perhaps the FED is preparing more surprises… that is why, just in case, I have directed my interest to a cross the GBPNZD to avoid US dollar pairs for at least the next few days.
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In the weekly chart we will notice the creation of an inside bar formation, which is also an inside bar on the daily chart. On the weekly chart we also have a downward divergence. If there is a breakdown from the IB, this double “bearish” pattern can lead to dynamic dips. The GBPNZD pair is known to be very fast and volatile, and overcoming 1000p per day is not uncommon.
Successfully overcoming the next support – support of the channel then round 2,000 and at the end the lower limit of the inside the bar will be a sign of weakness and further drops will be very likely. It remains to observe the price behaviour on these important supports and join the sellers in the right moment. The target may be the nearest demand zone 1.8550.
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