Short-Term New Zealand Dollar Forecast

27 Nov 2021

Possible next impulse for the New Zealand Dollar! After an impulsive wave that broke through previous structure and lower high point, the New Zealand Dollar has been going through a correction. Even though, we have been seeing bearish trending structure on the lower timeframes, if we zoom out then we can see that we are still trading between the previous higher low and the new higher high. Therefore any structures formed between these two points would be classified as sub structures. Therefore this means that because price has retraced all the way back down to the previous higher low that it is a decisive moment for NZD and we may get a reaction here. As you can see, price has started to show signs of slowing down with lots of indecision in the market which could be a sign of price wanting to change direction. However if we break and close below this level then my bias will be swayed to bearish and i will be looking for a break and retest type of scenario for sells, but for now, i will be looking on the lower timeframes for descending corrective movement into the structure level and a strong momentum bullish candle to add confluence of bullish intent. If we do see impulsive movement from this zone then i will be first targeting the daily key level of 0.50200 and then the weekly key level around 0.51200 for price to put in a higher high.

Edit: I just noticed that there is also a gap in price which generally always gets filled, therefore we can add this to our confluences that price will push up from here!

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