USD/CAD has made an immense move to the downside on Tuesday falling by about 200 pips.
NZD/USD is pulling down
Information is not investment advice
NZD/USD may be on the verge of breaking to lower levels. The pair formed a doji candlestick with a long upper shadow on the D1 - this is a bearish sign. The declining 50-day MA is capping the prices at 0.6110. On the H4, we see that the price has made a lower high. The oscillators are declining, so the pressure on the support line connecting April lows will likely intensify. The fall below the last week’s minimum of 0.5920 will open the way down to 0.5875 and 0.5800 (38.2% and 50% Fibonacci of the March-April advance). Recoveries will meet resistance in the 0.6040/70 area.
Trade idea for NZD/USD
SELL 0.5915; TP1 0.5875; TP2 0.5800; SL 0.5930
Last week NZD/USD once again met resistance in the 0.6155 area. As you can see from the chart, this area stopped the pair twice before within the recent month.
It’s worth paying attention to AUD/JPY. The pair has approached the resistance line connecting April and May highs.
Has the US dollar lost a top position forever?
We know that hammer formation may be effective in identifying trend reversals. Let's study it a bit closer to see real-life cases.
CAD will get fresh volatility after BOC statement on June 3 at 17:00 MT time.