Trading Chart Patterns WTI: Descending Triangle NZD Plummets Overnight
Welcome to this week’s Market Blast Technicals.
I’m Brad Alexander and on behalf of Valutrades today we will take a look at the Nikkei (JP225), WTI (US Oil), USDJPY, AUDNZD, and NZDUSD.
NZD has plummeted overnight based on a new COVID Delta case in Aukland and the news is that the Reserve Bank of New Zealand will not be raising Interest Rates tomorrow.
This has left NZDUSD at this key level of support.
If you are looking for a possible reversal of NZD then the place to look is AUDNZD.
Price action has been trending down since the beginning of June but we need to see a bounce off the upper trend line and confirmation from an indicator like the Stochastic Oscillator.
If you watched yesterday’s video, we pointed out the strength of JPY and we see that price action has broken support.
Pairs like USDJPY which had been trending down since June, still have room to move to the downside.
Also, from yesterday’s video, the price of WTI broke the neckline of this Double Top, came close to this level of support, then reversed.
Price action now seems to be forming a descending triangle so we will monitor the situation.
Speaking of Descending Triangles, the one few spotted last week on the Nikkei has just returned to support.
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That’s all for now. Happy trading with Valutrades and we will see you later in the week with our trading tips video.
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