The New Zealand dollar has been systematically losing its value in relation to the US dollar since the beginning of the year. The last six weeks have been a strong downward trend, the price has covered a distance of 450p, setting the minimum on Monday at 0.6340, where the price was last seen more than 4 years ago.
The daily chart shows the bullish engulfing, the price tried to hit the bottom of the formation yesterday, but failed and is still in the formation. MACD is growing for the third time in a row. This may be a signal of an upcoming correction.
In chart H4 below, we see that the price has been in consolidation for several days and a confirmed breakout in either direction may indicate a direction for the next few sessions.
Therefore, it is worth waiting for the daily candle to close and make than a decision when the price goes beyond the range of consolidation.
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