Quotations of the pair NZD / USD continued the growth process and fixed over the correction level of 200.0% – 0.7289. However, the bear formation “Falling Star” allows traders to expect a turn in favor of the US currency and a return to the Fibo level of 200.0%. The new bullish formation on July 14 will allow us to count on the resumption of the growth of quotations in the direction of the correction level of 261.8% to 0.7435. The consolidation of the pair’s rate below the Fibo level of 200.0% will work in favor of a further drop in quotations in the direction of the correction level of 161.8% – 0.7199.
The Fibo grid is built on extremes from April 24, 2017 and May 11.
On the 24-hour chart, after the bovine candlestick formation “Kharami”, the quotes executed a turn in favor of the currency of New Zealand and resumed growth in the direction of the correction level of 0.0% -0.7483. The bearish formation will allow traders to expect a reversal in favor of the US dollar and the resumption of the decline in the direction of the correction level of 23.6% – 0.7172. The consolidation of the pair’s rate below the Fibo level of 23.6% will increase the likelihood of continuing the decline towards the corrective level of 38.2% – 0.6977.
The Fibo grid is built on extremes from August 24, 2015 and September 8, 2016.
Weak candle formations will be marked by the usual text and the size of the arrows.
Strong candle formations will be marked by a more bold text and a larger size of arrows.
The material has been provided by InstaForex Company – www.instaforex.com