Video: A Clean NZDUSD Technical View Awaits Fundamental Confirmation
• A remarkably consistent descending trend channel for NZDUSD was broken this week
• Normally, this pattern could be read as a break candidate that trades former resistance as new support
• The break is in the books, but feeding reversal or continuation likely rests in conviction via fundamentals
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Both technical and fundamental analysis are good filters for identifying strong trade opportunities. However, individually, they can lack for creating a complete picture as to whether conditions are truly ripe or perhaps sending false signals. Trade evaluation that combines truly dissimilar analysis techniques provides the most comprehensive analysis. While a combination of genuinely distinct technical measures can prove a good filter, there are only so much variety we can find between price and time derivatives. Similarly, fundamental themes can conflict and miss the catalyzing levels not visible in the economic docket. Yet, when combined, a clearer picture can be formed. With NZDUSD staging a very a enticing and familiar technical pattern this week, what a more comprehensive read say about its trading potential? We discuss blending tech and fundamental analysis with a focus on NZDUSD in today's Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.