NZDUSD always retraces to breakout levels sooner or later. We have one that has not been revisited yet at .7121. This is definitely a longer term view on the pair, but I don't think we are ready to break down into new low territory just yet. I would assume a break of channel after a touch off the top of the ascending channel. Right now if we were to break the channel, it would happen off a bounce off the bottom of the channel.
I can't ignore the downward movement and the break of the minor channel, so I will remain short for now. However, I still believe that this pair is set to move higher especially with the reversal pattern that's emerged within this channel. So, I'm going short to .6573, then check PA to see if a long is good there. If so, then the long I will hold up towards the .7200 levels. This also goes in line with my beliefs on DXY. We should see a move higher up to hit the descending channel, and then a drop for new lows, which would catapult NZDUSD to make that move higher towards the upper ascending channel I have in the charts. No real trades here, just food for thought.
I can't ignore the downward movement and the break of the minor channel, so I will remain short for now. However, I still believe that this pair is set to move higher especially with the reversal pattern that's emerged within this channel. So, I'm going short to .6573, then check PA to see if a long is good there. If so, then the long I will hold up towards the .7200 levels. This also goes in line with my beliefs on DXY. We should see a move higher up to hit the descending channel, and then a drop for new lows, which would catapult NZDUSD to make that move higher towards the upper ascending channel I have in the charts. No real trades here, just food for thought.
