By: John Ursus
Timeframe: W1 Recommendation: Short Position
Entry Zone: 0.8200 – 0.8225
Take Profit Zone: 0.7800 – 0.7825
Stop Loss Zone: 0.8400 – 0.8425
The NZDUSD has opened with a gap higher which took it right into the upper band of its strong horizontal resistance zone. This currency pair has overstretched its rally and is temporarily trading above its Fibonacci resistance level. The NZDUSD should breakdown below this level in coming days amid profit taking.
A correction is necessary in order to remain the overall uptrend healthy. Look out for this currency pair to form a higher low and take this as a final signal to buy the dips. The NZDUSD posted a very strong two week performance and should be able to maintain its bullish bias with a few smaller corrections along the road to form a double top.