NZDUSD Analysis – Many bearish factors at once

Awesome sell signal can be spotted also on the NZDUSD. Quite surprisingly that will be the first time that we will write about this pair. It is one of the majors but so far, technical situation was not encouraging us to open any positions. Currently, we do have a nice bearish situation, which is influenced by the following factors:

First of all, we are in a deep down trend and for the past several weeks, the price was making lower lows and highs. In addition to that, NZDUSD created a head and shoulders pattern, which ended the mid-term bullish correction. Ended as we already broke the neckline of this formation (yellow). That is not the only pattern here though. The bullish correction was shaped like a wedge (blue) and we already broke the support there too.

With all this, the sentiment is totally negative and we should see a further slide. The sell signal will be cancelled, when the price will comeback above the right shoulder, which for now is less likely to happen