NZD/USD Intraday technical levels and trading recommendations for May 16, 2018 888011000 110888 The rate zone of 0.7320-0.7390stood as a significant supply zone during current bullish pullback. The bulls failed to execute a successful Bullish breakout above 0.7400 throughout the previous week’s consolidations.The NZD/USD set had been trapped in between the rate levels of 0.7170 and 0.7350 until bearish breakdown of 0.7200 happened Yesterday.Since April 13, considerable bearish pressure has been used. This most likely turns the short-term outlook forthe NZD/USD set into bearish giving considerable significance to the multiple-top turnaround pattern.That’s why, bearish breakdown of 0.7220-0.7170(neckline zone )was needed to validate the depicted reversal pattern.Bearish target levels around 0.7050 and 0.7000 have actually been achieved already.The bearish scenario needs obvious bearish determination below 0.7050 to keep considerable bearish momentum to 0.6860 and 0.6820. That’s why, the cost level of 0.7050 is currently thought about a key-level for the NZD/USD bears.Any bullish breakout above the rate level of 0.7050 hinders additional bearish decline enabling bullish pullback to occur to 0.7170-0.7220. This will probably permit conservative pattern traders to wait for a bullish pullback towards the cost zone of 0.7220-0.7170 (neckline zone) (considerable supply zone) for a valid SELL entry.S/L must be positioned above 0.7260. On the other hand, If bearish momentum continues, the rate zone of 0.6820-0.6780 should be watched for bullish rejection and a valid BUY entry.The material has been provided by InstaForex

Leave a Reply

Your email address will not be published. Required fields are marked *