NZDUSD draws negative formation – Analysis - 30-09-2016

The NZDUSD pair keeps its stability below the previously broken support of the rising wedge pattern, which keeps the negative effect of this pattern active until now, to continue the domination of the bearish trend on the upcoming trading, which its main targets begin at 0.7100 and extend to 0.6995.

On the other hand, we notice that the price is drawing head and shoulders' pattern that its signs appear on the above chart, its confirmation line is located at 0.7220, thus, breaking this level will form strong negative factor that reinforces the expectations of continuing the decline in the upcoming period.

Therefore, we believe that the chances are valid to trade negatively on the intraday and short term basis, conditioned by the price stability below 0.7329.

Expected trading range for today is between 0.7100 support and 0.7329

Expected trend for today: Bearish