FX market is showing clear preference for the New Zealand dollars from today’s open – which is evident by the continuously rising NZD sentiment wave on the intraday FX sentiment chart from the ActiveFX scanner. The NZD sentiment is mirrored by the U.S. dollar sentiment curve accelerating downwards.
Selected Alpha allows comparing intraday sentiment waves – here you can clearly see USD and NZD sentiment waves strongly diverging from one another – leading to strong intraday gains for the NZDUSD currency pair.
The following chart shows NZDUSD currency pair rising sharply intraday due to this sentiment divergence. Notice the accuracy of the previous torch reversals.
It should be noted that the bullish NZD sentiment is aligned with the active bullish NZD sentiment impulse (calculated by Selected Alpha as the average normalised currency pair impulse of the NZD-linked currency pairs) – which increases the likelihood the bullish NZD sentiment will continue to strengthen over the course of today’s trading session.
The following table ranks the top affected currency pairs – pairs lying at the intersection of the strongest forex sentiments at the moment:
As can be seen from the Res Distance column the top 3 pairs have on average 35 pips to go their next resistance levels as the following charts demonstrate. Selected Alpha provides tactical technical setup evaluation for the top affected currency pairs – calculating the distance to the next important support and resistance levels.
NZDCAD currency pair is approaching golden resistance level 0.8888. Intraday downward correction likely.
Notice the accuracy of the previous candlestick reversal patterns – especially the Torch reversal patterns (labeled as T on the charts above).
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