NZD/JPY Technical Outlook: Bearish Correction Ahead?

Commodity currencies are closing strongly after a tough week. Against the New Zealand dollar, the US dollar could look for gains in the near future. In addition, the yen is also able to take advantage of dollar weakness as risk averse traders seem to prefer the Japanese currency while the scrilla tends to favor some geopolitical risks. The anti-risk Eastern Yen might see some cautious features forward, but follow-through might be missing.

A bullish zigzag-correcting wave pattern consists of a total of three waves. The Bullish zigzag pattern Elliott heard wavy patterns on the principle Elliott waves, which shows that as price action does not move in a straight line fashion, but swing in a series of higher swing highs and higher lows. Bullish zigzag-correcting Elliott wave patterns in an on-trending market could be seen within the above picture.

The economic data released from New Zealand showed a decline in truck traffic, suggesting fewer goods were moved domestically. if data picks up, it could add a tailwind and the argument for a bounce, even if it is not strong enough to justify a turnaround. During the European trade for December provisional inflation data in Germany is released.

The stochastic indicator shows where the price of a security in relation to its price range closed over the specified period. Hourly momentum indicators have been improved, but they are still configured negative. The daily momentum indicators continue to signal further downward movement for the asset, with MACD lines indicating a bearish cross in the negative and RSI close to 30.em technical signals but otherwise suggest.

Either way, as the prices react below key resistance remains the key to the next directional break. How they react to resistance might be the key to the way it breaks next. With it now winding up the 68c level around the case for range expansion builds, though one could argue that we need mean reversion before the next legs lower. If the price rises above the moving average, it indicates that the investors on the commodities have been bullish. Closing within the range of the previous day, prices failed to move decisively past the trading range of the previous day. For intraday data, the current price is used instead of the closing price.

all financial market trading risks. The entire trade is fraught with risks. If a trader knows what a bullish zigzag correction pattern looks like then it would be a lot easier for forex traders to actually analyze the forex charts and make a trading decision as well. Alternatively, investors may also continue to search to adjust to important fundamentals ahead of their businesses hang. The investor alone is responsible for the risk of his investment decisions. Obviously, bond investors agree as global rates continue to move up further than we expected.

In general, an upward trend has a positive effect on the GBP, while a falling trend is seen as negative (or bearish). The most important trend is until after the day swing chart. Based on Elliott’s wave prediction, part of a bullish zigzag-correcting Elliott wave pattern is the current uptrend, wave C leg in higher timeframes.