Baxia Markets News

NZDUSD: Making a Pennant

Written by Baxia Markets | Oct 6, 2021 7:02:39 PM

 

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. 

 

We love to hear new ideas from traders and want to know what you think! 

 

If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.

 

 

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 

 

Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.