NZD/USD - Set to Create another Higher-Low Before Bulls Run Riot

Published date: 03/06/2018
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This pair has tested our patience since my long trade was given two weeks ago around the 0.6900 area. Since we managed to reject this level and show some bullish behaviour, we have seen the price has still been trapped in a type off consolidate zone and compressed into a triangle pattern. As shown in my chart we had a fake break out of this triangle pattern and my counter trend line, creating a double bottom at the same time.

After weeks of persevering, we had a nice bullish push to the upside as we rejected 0.6900 once more, breaking out of the triangle formation and printing a daily bullish engulfing candle showing the intent of the coming days. After breaking out and making new highs, the price is now pulling back to retest support. In the coming week, I can see this pair possibly retracing further to the 61.8% Fibonacci level , creating a higher low before the next leg higher and hitting my target of 0.7100. 

Honestly, the NZD has been following the commodities correlation and is CAD and AUD gets stronger so will the New Zealand Dollar or vice versa. On Tuesday we will look out for the GDT dairy trade index but in recent times it hasn't moved the NZD too much.


Comments

  • NZD/USD - Set to Create another Higher-Low Before Bulls Run Riot
    Rohamfx says:
    04/06/2018

    Its A grade Buy Position

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