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I’ve started this month with a little drawdown as expected. Let’s see now, what is NZDUSD doing, and what I expect:
Monthly: Last week I said ” with only one day left to the end of the month, it looks like we will have the BEOB. We only need a close below of 0.7155 to confirm it. If so, the bearish implications will be relevant”. Well, the month closed at 0.70348, so it’s a BEOB bar. A BEOB after hitting resistance is obviously bearish. The first target is 0.6780 (November 2017, minimum)
Weekly: Another bearish week. If you look the weekly chart, you will find that movements with more than 3 consecutive bearish weeks are strange, so next week will be probably bullish.
Daily: April 30 CIT failed, I considered as a valid CIT because of the price action on April 27, but finally failed, and this causes me some unexpected losses.
After that, there was the May 3 CIT, and with the price action on that day, it looks like is working. Price also reversed after hitting “reaction line 3”, and is inside support zone (Dodger blue rectangle).
For all of this, I still expect a pullback to the resistance zone ( yellow rectangle), in which case, I will resume the selling aggressively.