As can be seen, the price of NZDUSD has been making a pennant since Sep 23th. As we know, the pennant is always considered a breakout signal; and the breakout direction would be the same as the previous trend. So, for this specific pennant, we would expect the price to go down soon. However, the price still hovers around the 0.691 level.
This is a big pennant that has been forming for almost two weeks; the waves were clear and shrinking. Will the price go down as we expect? Now let’s focus on signals. The MACD just made a death cross, and the downward angle is significant here. The Ichimoku cloud is going down; however, it is still above the price line. The Parabolic SAR just made a new downward trend. Also, the price has tested lower Bollinger Bands twice during the pennant.
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