After a very strong sell of at the beginning of the week, the technical situation on the NZD/USD pair starts to look interesting. The daily chart shows an interesting symmetry. Well, the last three supply impulses had almost identical ranges, and what is even more interesting, the last reflection also made an almost identical upward movement. The question is now whether the price will really return to declines or whether we are beginning to create a new upward trend. Strong increases have been caused mainly by the weakness of the American currency.
Concerns have been voiced by local FED members that the intensification of the trade war with China may eventually translate into a slowdown in the US economy. The temporary weakening of the American currency has been exploited in most markets. Currently, the situation seems to be returning to normal, although it should be remembered that New Zealand has the same concerns. The markets are still afraid that the slowdown in the Chinese economy will translate into the New Zealand economy, and thus into the weakening of the currency. It seems that we have a kind of stalemate between these currencies, although the next few days should show whether the price will return to its last peak or whether, despite a significant correction, we will continue the downward trend that has been going on since the beginning of the year.
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