For the last 6 weeks NZDUSD has been moving in a strong downward trend. I wrote about this pair in the summary of the last week. On Friday, for the first time in a long time, there was a sign of a slowdown in drops, the daily candle took the form of a pin bar.

NZDUSD H4 – a bullish divergence

In the chart above (H4) we have a upward divergence, which started on Friday afternoon during the American session, and today’s Asian session confirmed its continuation.

NZDUSD H1 – a bullish divergence

If you look at chart H1, you will notice that the price is breaking the downward channel. And here, too, we have upward divergence in price/MACD. If the upward movement continues, the nearest supply zone of 0.6340 may be the first target of the current correction.

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