From Investor to Scalper is a cycle of analysis in which we take one financial instrument and the analysis includes a detailed look at the value from the monthly/weekly chart to the H1/M30.
NZDUSD since the formation of the double top around 0.8800 in July 2014 was moving south. Despite the fact that these decreases did not reach the level of 0.6000, in September 2015 the first demand reaction appeared and from then on we observed calm increases.
Looking at the weekly chart, we can see that if those increases are continued, we would even expect to re-test level 0.7700. For this to happen, however, the market would have to first overcome the local (blue) resistance of 0.7520.
On the 4-hour chart, however, we note that the price is currently in the local resistance area, where the supply reaction appeared on Friday. If, therefore, this zone once again stops buyers, we would expect at least a downward correction.
The crucial factor in this case may be whether the market will break the top or bottom of the current consolidation.
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