NZD/USD: two shooting stars point to upcoming downfall

This pair had a significant and unexpected upward movement during the Friday session, but the kiwi dollar found the 8500 level to be very resistive. That’s the second shooting star in a row, so this will suggest that there will be a major downward movement in the next days, starting Monday.

4H Chart

We see a support at the 8400 level, so it’s a good moment to short this pair having 8400 as first and 8300 as second target in the short and medium term respectively.

This pair could not resist above the 8500 level for too long, but we have to say that the 8500 resistance hasn’t been broke yet, so this pair may continue higher if this resistance is broken. However I am confident that it won’t since this area seems like a wall in the recent weeks for this pair.

If there will be a decent break above 8500, aim for the buy, otherwise I am confident for a nice downfall considering the fact that there were two shooting stars in a short period of time.

Written by @AndreaCarnimeo, if you liked the article come to my wall to say hi!

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