NZDUSD Daily updates for 21.06.2016

4HR NZDUSD Chart for 21.06.2016

Hello Traders, Back to yesterday behavior of the candlestick, yes, overly, the trend was positive and this month’s high wasn’t cleared. We look for some few technical and factors that might have contributed and or slow the upward momentum. First, to the 4 hour chart we are seeing a sideways movement of price and in my opinion, looking at the stochastics, price is going to correct to last week’s highs at around the 0.708 price tag and it will act as our area of momentary support or even lower to the 50% retracement level-at 0.705 which is a very strong support area and will trigger all buy limits if price action corrects to that level. So, despite the daily candlestick being bullish and the 4 hour chart being overbought, we remain neutral and wait for where today’s daily candlestick will close, if it closes as a bearish candlestick then we initiate our shorts but if it doesn’t and clear’s this month’s highs at 0.715 then we go long. Fundamentally, there is no major news other than Yellen testifying later in the day at 5-GMT+3, if you will be watching then watch out for the unscripted Q&A session when comments might be made to trigger some volatility in the markets. As always, try to focus on this because people are fixated on Brexit votes when NFP data was so bad and against the Fed’s forecast. Otherwise, we remain neutral today guys and take our profits as we wait for the close of today candlestick.

Source: Dalmas Ngetich

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