Last week’s investor demand yielded a 4th positive weekly performance from the last 5. Importantly, the move took NZDUSD to the most positive levels traded for 14 weeks, breaking above the trend defining 21 week moving average.
This confirms a similar bullish cross in the NZDUSD RSI indicator that occurred 3 weeks previously.
A change to a bullish bias comes after 6 months of negativity. That began with bearish (dead) crosses during April in both the spot NZDUSD and the RSI, The subsequent decline yielded, at the most extreme, NZDUSD losses of more than 6 1/2 big figures remaining comfortably under the moving averages throughout that time.
With the trend now turning positive , also highlighted by a basing of the weekly Keltner channel, NZDUSD has already recovered 38% of the February to October deterioration.
We now look for investor demand to dominate, with profit taking setbacks bought, and sentiment exposed to .6931 then .7051, broader recovery levels of 50% and 62%.
About FX Renew
This blog post was published on www.fxrenew.com, a provider of Forex signals from ex-bank and hedge fund traders (get a free trial). If you like this post, subscribe to the blog for free or get free access to the acclaimed Advanced Forex Course for Smart Traders.