NZDUSD:-A potential Head and shoulder pattern has started to form.

Overview:- By looking at the daily technical chart we can see that an half curve has been formed where a very balanced demand and supply is going on where bulls are now controlling the game with full momentum. Earlier pair was falling down and it fall sharply from 0.7032 level to 0.6207 level and after marking the low , bulls took the charge.

Well the current picture dipicts that bulls are dominating the bears and now bears lost the grip from the market. It’s just a starting of the journey we will get further bullish signal above 0.6410 level, we need a daily closing above the mentioned level then only we may get surety for the arrival of 0.6500 level and 0.6600.level in near term.

Technical Analysis: – From technical prospective we can see that a downtrend line has been breached out where bulls are surviving above the breached line. The bulls have  took the charge from starting of the October month itself where bulls made a fabulous counter attack from 4 year’s low and took the pair from 0.6210 to 0.6400  level. Well it is just a starting further picture is still due and we are expecting that a fantastic rally is awaited.

The short term trend has been changed from downside to upside and odds are in favor of bulls and we will keep our view as bullish on the pair as long as 0.6210 level remains intact. The pressure is coming from bulls to take it around 0.6400 level.

RSI is also turned up above 50 level and MACD line recently crossed up the zero line on the daily chart Overall pair is trading and sustaining above the moving average lines which is generating bullish signal for the time being.

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