The ascending trendline is broken
NZD/USD price had been descending within a channel until at 13th of October, when the price was on the mid line of the channel, a strong bullish trend started. Today, 19th of October, the price could break out of the channel and the descending wave seems to be finished.
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is daily.
There is another resistance, almost on 0.715, to be broken before the ascend starts. Right now the price is reacting to this level. RSI indicator is also showing positive inversion and a correction phase is expected to occur shortly. The target of the descending wave would be the broken resistance. 0.709 could be set as target for sellers. The price is expected to inter an ascending phase. The targets for the bullish wave would be 0.715, and in case the price line can break above this part, the next take profit would be 0.728. If the price can break inside the descending channel again, a descending wave would be expected, the target of the wave could be the bottom of the channel or the midline.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.