Bearish future ahead for NZDUSD as resistance holding

In terms of fractal counting, we are in the first wave of a trend continuation. Looking at the longer term weekly and monthly time frames, this pair remains bearish. Right now, the 4-hour time frame suggests this too.

NZDUSD 4 Hour Time Frame
NZDUSD 4 Hour Time Frame

First up is the lower fractal high. This pair barely enters this resistance zone before pulling back. The candlesticks show this market psychology quite nicely. After a bullish candlestick entering in this resistance zone, a much longer bearish candlestick appears immediately after.

The most recent string of bearish candlesticks signify selling for the past 12 hours (3 x 4-hour time frame). The selling will be followed by covers of course, but I still maintain the bearish stance. It is always better to trade with the trend. With a bullish USD, short term losses will be offset by the fundamental strength of the dollar.


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