NZDJPY is ending its correction and returning to the downward trend. The price is consolidating for a possible continuation of the downward movement…
The price breaks the support of the upward channel (countertrend correction). The movement occurs in a “step” format, which generally indicates weak demand. Clear consolidation boundaries are forming on the chart. The global trend is downward, and the local trend has also resumed its downward movement. Focus on two zones: 86.5 – 86.96. Within the framework of trading strategies, a false breakout of resistance or a breakout of support can be considered with the aim of continuing the decline.
Resistance levels: 86.96, 87.16
Support levels: 86.5
As part of consolidation, MM may form a liquidity trap on the resistance side, and a false breakout may trigger a further decline. However, if the bears increase pressure, the formation of a pre-breakdown base relative to the 86.5 support may trigger a breakout and a continuation of the downward movement.
Best regards, R. Linda!
