H4
Positive informational background increased bullish sentiment on the NZD/USD market that advanced to the upper limit of the 4-hour Cloud. The pair recovered by over 200 pips and stopped near 0.7800 thus showing the record growth in the last two months.
However despite the short-term positive sentiment, the long-term trend remains negative. The Ichimoku Cloud has a downside character that will remain such during next 1-2 days.
In case the bulls cannot break the resistance the upper Kumo limit the price might return to the Rotation line (3), thus forming a correction.
The Chinkous Span deviated from the graph also confirms the possibility of such events.
H1
In 1-hour graphs the main sentiment is positive. The Ichimoku Cloud retained positive character and is widening the range in the positive direction due to the growing Senkou Span A.
The short-term Tenkan-sen and Kijun-sen formed a new Gold cross (5) meant to support the bulls in the nearest time.
It is worth mentioning that the Kijun-sen (4) formed a new support at 0.7700 that will resist possible corrective decline.
During today’s session the price might decline and trade sideways inside the Tenkan-Kijun channel. However, if the Rotation line cannot provide support the bulls will try to resume the recovery.
