NZD/USD: The 3 month forecast
Pair looks to have completed what seems to be an arbitrary harmonic pattern based on fibonacci ratios. If anything, it seems like a perfect Gartley if it weren't for the 50% retracement on XB instead of the usual 61.8%.
Nevertheless, this is also confirmed by the RSI(14), where previous historical data show that a break above the 70 mark was a strong bearish signal that should be noticed.
Most likely, bears will not move too far down, where a bigger bat pattern would most likely complete on the upper trendline by the end of this year. The 38.2% level seems like a reasonable target for correction, which is also confluent with a previous resistance line.
Set your entries and exists accordingly, buy on breaks and sell at pattern completions.
Nevertheless, this is also confirmed by the RSI(14), where previous historical data show that a break above the 70 mark was a strong bearish signal that should be noticed.
Most likely, bears will not move too far down, where a bigger bat pattern would most likely complete on the upper trendline by the end of this year. The 38.2% level seems like a reasonable target for correction, which is also confluent with a previous resistance line.
Set your entries and exists accordingly, buy on breaks and sell at pattern completions.
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