Header Ad

a selling climax is expected before a major reversal


AUDUSD

Scenario implementation: executed

The Aussie declined in line with the expected scenario, as suggested in the previous survey. The incipient consolidation actually turned into a triangle, which, however, ended somewhat earlier than expected, but the exit from it still took place downward, followed by reaching the target area.

In its downward movement, the pair found its main support only at the level of 0.7295, at which it managed to stop and subsequently rebound, regaining part of its losses to date. This is the first sign of an imminent reversal that may occur in the very near future after the retest of the current minimum.

Forecast: upward reversal expected
AUDUSD / NZDUSD: Selling Climax Expected Before Major Reversal

If the current growth does not transform into a full-fledged impulse, then it can be regarded as a corrective one, after which a wave of decline with a minimum target in the area of ​​the last local minimum with its possible renewal may take place. At the same time, support on the way of this decline is the level of 0.7295, which will hold back attempts to go below. Confirmation of intentions for a reversal will be a retest and a rebound from this level, which will aim the quotes in the area between 0.7464 and 0.7500.

A signal to cancel the current scenario will be a further decline and a breakdown of the reversal level at 0.7272.

NZDUSD

Scenario implementation: neutral

The New Zealand dollar also declined as expected under the assumed scenario of the previous survey. Having gone below the resistance at 0.7004, the price tested it from the reverse side and, having already consolidated below, began to actively develop a downward movement, which practically reached the target area, without hitting it just a couple of points. Then she turned around and began to recover.
AUDUSD / NZDUSD: Selling Climax Expected Before Major Reversal

It is likely that full achievement of the target area may only be a matter of time. Therefore, the scenario in general could be considered implemented. However, this will take place as part of the retest with the last wave before the final upward reversal.

Forecast: upward reversal expected
AUDUSD / NZDUSD: Selling Climax Expected Before Major Reversal

Similarly, in this pair, the current price recovery can be regarded as corrective, after which a wave of decline to the previous minimum should be expected. At the same time, the first barrier on the way is the support level at 0.6924, in case of its inability to contain, the price passage is likely up to the reversal level at 0.6879. Confirmation of intentions for growth will be a rebound from this zone with a return higher, which will aim the pair in the area between 0.7051 and 0.7094.

A signal to cancel the current scenario will be a breakdown of the reversal level at 0.6879 and a move below this zone.

07/22/2021

Arman Beisembayev, Tickmill expert

The best trading conditions on a PRO account

More materials in our telegram channel: Tickmill

DFMFOREX

An interactive magazine for Forex traders. Here you will find the latest relevant news, examples of successful transactions and unsuccessful investments. Our journal contains a daily report of the trade of our specialists on the Forex exchange.

Forgot Password