NZDUSD an opportunity for new short positions after a little adjustment in price

NZDUSD forex technical analysis D1 | Our expectations:

Downward trend and adjustment to 50% Fibonacci, where a Head and Shoulders formation appears. The neckline is broken, and if the price returns to test the breakout, it will fall into an area of ​​multiple diagonal and horizontal resistances around  0.6805 where we can look for new short positions with SL 0.6895.

The H & S formation is likely to keep the pair moving south, as the price is currently inappropriate for entry and awaiting adjustment to minimize risk.

The SMA200 and SMA50 are in bearish formation – negative for the pair.

DeM (14) in an oversold zone below 0.3 – a good chance of expecting a slight correction where we can position.

Fundamental: New Zealand keeps interest rates at a record low in 2018, with no central bank signals for interest rate hikes in 2019, while the Fed’s plan is for a new 2 increases in 2019. This supports the long-term NZD scenario continuing to depreciate against the USD.

Alternative Scenario: Breaking the price above the resistance zone will break the negative scenario for the pair.