When will we see a clear trend on NZDUSD? NZDUSD has climbed up from 0.694 to the recent high of 0.730. The price started to rise at the beginning of April. Recently, the upward trend seems to meet resistance. The uptrend seems to lose steam, as can be seen, the price has maintained a range since the beginning of May.
The price has overlapped with the Ichimoku cloud and EMA25 here. Now, a pennant pattern is being built over more than 23 days and is about to finish. Where does this signal lead us to?
The pennant pattern is always considered a breaking signal, however, in which direction could the price go? Usually, the old trend, which was the trend before the pennant pattern, could be the direction for the breaking direction. So, according to the previous trend, the price could break out from the upper line. The MACD just made a bullish cross. Also, the Stochastics are going up rapidly, however, the Stochastics are about to touch the overbought area, and this could be a concern.
Do you trust this pennant pattern?
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forex, trading conditions, technical analysis, fundamental analysis