Last week, the NZD/USD fell 526 pips from its high of .7521 down to a low of .6995. We had not see that level since the end of October. However, this steep sell off from the .7500 high seems to hit a major road block near the .7000 area.Dollar Bulls may be in for a surprise as this pair continues to defy gravity and the bearish sentiment.
A Hammer candlestick pattern punctuated the end of the decline last week and is setting up a good long entry in the direction of the daily trend. Kiwi dollar is still trading above its 200 SMA and has bounced from an area of support in the .7000 area. Stochastics is hooking up just above the 20 reference line. Price may try once again to retest this area before moving higher.
Stops can be placed 2 pips below the November 27th low at .6993 with a take profit point set at .7442
A Hammer candlestick pattern punctuated the end of the decline last week and is setting up a good long entry in the direction of the daily trend. Kiwi dollar is still trading above its 200 SMA and has bounced from an area of support in the .7000 area. Stochastics is hooking up just above the 20 reference line. Price may try once again to retest this area before moving higher.
Stops can be placed 2 pips below the November 27th low at .6993 with a take profit point set at .7442
No comments:
Post a Comment