NZD/USD: On The Road To 0.6700
Hi Traders and welcome to a new week on EverythingFX.
Our members had a great result with our USDJPY long trade given this morning achieving 40-50 PIPs profits so far and I am now currently watching NZDUSD at this very interesting area.
Last week we saw a very nice decline on this pair once price broken back below the 0.6900 weekly support level, retested this as resistance and then fell 170 PIPs to the lows of 0.6730. Once we hit this level last week we have seen a slow down in price action and have not been able to decline any further as price has now been stuck range bound between 0.6730 support and 0.6770 resistance as highlighted on my chart.
I am watching price action around this support very carefully. Though initially this pair looks set to decline further, after a fast decline last week we may see more of a retracement from this pair before we head further south. The break out of this range will be our sign as to where this pair goes next but should we reject the support of 0.6730 once again, this may be an early sign of some bullish momentum about to enter the market.
If we break below 0.6730 and the consolidation zone, 0.6700 is sure to be hit very soon. However, if bulls enter the market and the 0.6730 level can hold, we could see price break out of the upper side of the consolidation zone and head back towards 0.6800 and then 0.6850.