The NZD/USD pair has nowhere to go but down

Forexmentor.com Forex Trading Price Action

An inspection of the weekly, daily, 4 hour and 15 minute charts for the NZD/USD pair (New Zealand Kiwi), well before the London open today, revealed that we were in a downtrend continuation pattern – about to unfold early on in today’s new session (starting at midnight ET).

The 50x100x200 EMAs were stacked in their proper order on the 1 hour and 15 minute charts to signal a continuation of price weakness. Sure enough, leg two of the pattern kicked in just before the London open, and price fell almost the same distance as leg one. If you look closely at the weekly chart, you will soon realize that price has nowhere to go but down – much further. There is negative divergence on MACD histogram, and MACD is about ready to punch down through its trigger line.

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