NZDUSD → Waiting for the bearish scenario to materialize

27 Sep 2023

NZDUSD forms a breakout of the descending channel resistance and forms a symmetrical triangle. Breaking the resistance of the pattern could give a strong impulse, but amid the strengthening of the DXY there is little chance for that.

The dollar continues to strengthen towards 107.5, as I mentioned earlier in my ideas. Against this background, the NZDUSD currency pair could realize the bearish side of the "symmetrical triangle" set-up. In this case, the price may break the support of the pattern (0.5902 level) in the near future and head towards the areas marked below. Globally we have a downtrend and lack of growth attempts. In technical analysis there is a "flag" setup - a figure that portends the continuation of the trend. This is exactly what I am expecting when the support area is broken. It is most likely, based on fundamental and technical factors, that the currency pair will continue its decline.

Support levels: 0.5924, 0.5902
Resistance levels: upper boundary of the figure, 0.5990.
In the long term, I expect a break of support with a subsequent fall in the trend towards 0.5750.

Regards R. Linda!