By: John Ursus
Timeframe: W1
Recommendation: Long Position
Entry Zone: 0.8500 – 0.8520
Take Profit Zone: 0.8800 – 0.8820
Stop Loss Zone: 0.8400 – 0.8420
The NZDUSD has rallied strongly since November 2011. The rally took this currency pair from an intra-day low of 0.7369 to an intra-day high of 0.8835 from where the most recent correction took place over the past three trading weeks. Now this currency pair has reached a very strong support level from where a reversal should be accounted for.
Forex traders are advised to monitor the support level between 0.8470 and 0.8520 carefully. Should price action maintain support a sharp reversal is likely to follow which could push this currency pair to new highs; a breakdown of this level is likely to take this currency pair to its next Fibonacci support level of 0.8330. Currently bullish factors should be able to avoid a breakdown which creates attractive upside potential.
