New Zealand Dollar Daily Key Reversal

Daily Bars

Prepared by Jamie Saettele, CMT

The NZDUSD also carved out a key reversal today. Interestingly, the high was registered right at the line that is used to estimate the right shoulder of a head and shoulders pattern (line parallel to neckline is extended from left shoulder). Of course, we don’t know if a multiyear head and shoulders is unfolding yet or not but this method is anticipatory. Resistance extends to 8410. A drop below Monday’s low at 8322 would increase confidence in a reversal.

Bottom Line – sideways / lower