FXStreet (Delhi) – Research Team at NAB, suggests that last week’s bounce in NZD/USD completed a neutral weekly candle (spinning top), highlighting a degree of balance between buyers and sellers.
Key Quotes
“While this is cause to target a period of ST consolidation/correction it is not a sign that the MT downtrend is in danger. Immediate implications are for a shift sideways in the coming week. Only a weekly close this week above 0.6560 would imply a deeper correction towards 0.6650/00. Note that the text book target projection from the broken multi-month triangle is 0.6000/25 and remains a stretch target for this downtrend. The MT downtrend remains in play while price is below the base of the correction triangle, now at 0.6690/10.
Momentum
ST Momentum has shifted to a positive bias implying further consolidation/correction in the near term. MT momentum remains negatively biased, highlighting the MT downtrend.
Outlook
Recent ST positive triggers imply that price will remain in a messy consolidation (0.6400/30 to 0.6550/80) in the coming week. Only a weekly close above 0.6560 this week would be reason to expect a deeper upward correction towards 0.6650/00. The MT downtrend remains in play while price is below the base of the correction triangle, now at 0.6690/10.”
(Market News Provided by FXstreet)