H4
Yesterday bullish sentiment was dominating on the New Zealand dollar market. As expected, the price broke up the resistance formed by the Tenkan-sen and the Kijun-sen in a 4-hour timeframe.
By this time the Gold Cross had already been formed, which added certain positive sentiment after a continuous downtrend.
However, there were many resistance levels on the recovery way, which caused the market to reverse today in the morning. As a result the NZD price returned to the Rotation line (3).
It is worth mentioning though that the Tenkan-Kijun channel (3, 4) is directed down. It means that the decline can be continued up to the Kijun-sen (4).
H1
Yesterday’s growth caused the 1-hour trend to switch to the upside.
The Tenkan-sen and the Kijun-sen formed a Gold Cross (5) that helped concentrate short-term bullish sentiment for a dash to the upper limit of the Cloud.
The Cloud itself changed its character to the upside.
Moreover, the Chinkou Span fixated above the price and is now seeking for support near local highs.
If it is unable to break the price graph down in the nearest time, we might expect a rebound to the upside and further short-term uptrend with the price fixating above the Kumo.
Otherwise the main 4-hour downtrend will be continued.