NZDUSD:- Range Boundary To Be Broken
NZDUSD:- There is currently no stopping the 0.7200 support zone as once again we saw a rejection from this region and price has pushed its self back towards the upper boundary of the current range high around 0.7400. After breaking structure of the descending trendline and forming an inverse head and shoulders patterns on the daily timeframe from the 0.7200 level. A break of the neckline that would be regarded as the 0.7300 price region has occurred on Tuesday and indicates that there could be higher prices to come on NzdUsd.
We need to be aware of the 0.74100 level as this is a previous daily resistance for the pair and price has rejected on 3 previous occasions.
As we approach the 4th attempt, there is a strong possibility of breaking the consolidation region high and pushing higher to the all-important key psychological level of 0.7500. Only upon a break of the daily resistance could I consider a further position on the pair as we look to once again revisit a major sell-off region
Previous:- The pair remains range-bound creating a series of Lower-Highs, with a significant decline from the 0.73500 regions towards the end of last week in which we fell 160 PIPs to the lows, retesting once again the 0.7200 regions.This remains the critical support for the pair as the price has failed to reach this level on 3 sperate occasions. On Wednesday we do have a large number of fundamentals being released in relation the US dollar and therefore we may see a consolidative market until then.
If a break below 0.7200 can occur will be looking to complete the Fibonacci sequence and target downside levels of 0.71500 and beyond to 0.70550.
Having closed extremely bearish on the weekly timeframe we would then expected further downside to occur, I will be looking for any retest of minor resistance areas before the continuation short.