The NZDUSD appears to have closed last week below this trend line that extends from the September 23, 2015 low.
As evidence that the 0.6990 area will begin to attract sellers, look no further than the 4-hour candle that closed today (Monday) at 5 am EST. The high was 0.6990 and is still holding as the session high as I write this post.
That said, I’m only interested in trading the NZDUSD on the daily time frame. And considering that the current price is still more than 100 pips from the 10 and 20 EMAs, I wouldn’t be surprised if we see some consolidation before the next leg lower.
Bearish price action from the 0.7000 area could present a favorable opportunity to get short. Key support comes in at the May low of 0.6820. Alternatively, a daily close (5 pm EST) back above the trend line near 0.7000 would negate the bearish outlook.
Source: bit.ly/2z19LrU
As evidence that the 0.6990 area will begin to attract sellers, look no further than the 4-hour candle that closed today (Monday) at 5 am EST. The high was 0.6990 and is still holding as the session high as I write this post.
That said, I’m only interested in trading the NZDUSD on the daily time frame. And considering that the current price is still more than 100 pips from the 10 and 20 EMAs, I wouldn’t be surprised if we see some consolidation before the next leg lower.
Bearish price action from the 0.7000 area could present a favorable opportunity to get short. Key support comes in at the May low of 0.6820. Alternatively, a daily close (5 pm EST) back above the trend line near 0.7000 would negate the bearish outlook.
Source: bit.ly/2z19LrU