Very sharp rejection of NZD’s bullish move. Very interesting to see clear divergence on H4 before the reversal. H1 showed a great entry opportunity, thanks to CAD correction in yellow rectangle.
After showing strong bearish move yesterday, today GBP completely reversed and put up a bullish move. Interestingly, half of this move happened in the very early hours, before BOE kept the interest rate unchanged. No matter how much fear mongering media will create, at some point there will not be any trader willing to sell GBP this low. It will be interesting to see if it creates a significant bullish cycle on Daily-Weekly.
NZD has been the most bullish currency in the past couple weeks and now it also starts correcting – possible even reversing. RBNZ will be meeting on 10th of August and unless NZD depreciates by then there is a very good chance of a rate cut. The Market would normally price upcoming change before hand, so we might see a bearish cycle on NZD for the next 3 weeks.
Together, GBN and NZD represent two of the most interesting currencies at the moment, because they have been leading the whole market (together with JPY) recently.
NZD is also interesting because together with CAD it represents the strongest bearish move this week so far:
The bullish move created by NC at the end of the last week is completely cancelled now. The price is approaching Daily TL.
Looking at NZD profile on H4, many pairs have broken below their recent swing lows.
Looking at CAD, the bullish move this week is very well sustained so far (with exception being CG). However, CAD is slowing down and is very likely to correct in the last couple days, before it can continue higher. Supply is coming at these higher prices virtually on all CAD trading pairs.