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Answers From The Experts

Updated: Feb 17, 2020

NZDUSD appears to have some shorting potential? What do you think?

Answer from Professor Cornelius Ward:

I can see how it appears that way (pivot to pivot), but remember...

Never isolate your decision on a pair.

Read the chart, but never forget to read the market.

(1) NZD and AUD are both positively correlated to XAUUSD (Gold)

(2) Gold is currently in an Up Trend (Big Picture)

(3) NZDUSD and AUDUSD are both negatively correlated to the DXY

(4) The DXY is currently in a Down Trend (Big Picture)

(3) NZDUSD and AUDUSD are 90% positively correlated to one another

(4) AUDUSD is currently in an Up Trend (Big Picture)

(5) Therefore, NZDUSD should be in an Up Trend

So the above market conditions are what drove me to look for the next Demand Zone on the NZDUSD to continue the Up Trend we've been in since 0.6385. Based on the 4H, it's possible it may go as low as 0.6525 before we see an Up Trend.

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