I am looking at the NZDUSD chart. There are a few factors that are making me think it might be time for this pair to turn the tide.
The Bigger Picture
The Daily chart looks quite bullish to me. There is the major support level at 0.7200. A Bullish Engulfing pattern formed two sessions ago. Today’s candle might end up being a bearish rejection or a pin bar.
It seems like bears are not in control anymore (or at least for the foreseeable future). Let’s zoom in and change to 4 Hour chart.
4 Hour Chart
It seems like a Bullish Engulfing pattern is about to form on the 4H chart. This gives a further indication that bulls are ready to explore new heights. From an intraday perspective, the picture looks bullish.
A possible scenario could be a long trade after a small retracement towards the middle of the bullish bar. I will be monitoring for future developments and possibly take advantage of this setup.
Let’s see if price action confirms my expectations.
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