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Nzdusdbreakout

NZDUSD Extends Recent Gains With a Close Above 0.7040Over the weekend I mentioned that we could get a range break opportunity from the NZDUSD this week. At the time the pair was trading between 0.6970 support and 0.7040/5 resistance. Given the technical landscape of the past few months, I was favoring a break to the upside. Yesterday’s close at 0.7052 appears to have given us that upside break. As such, any bullish price action on a retest of the 0.7040/5 area could present a buying opportunity. However, I’m hesitant to enter now given the upcoming RBNZ rate decision on Wednesday at 4 pm EST. The event is likely to cause unfavorable conditions which make an entry at the moment a little too risky. Of course, I could miss the opportunity altogether if I wait. If that happens, I’ll look to the next key level at 0.7133. A close above that would expose the next resistance level at 0.7240. Alternatively, a daily close back below 0.7040/5 would expose the 0.6970 handle followed by the recent swing low at 0.6890. I’ll likely remain on the sideline until the dust settles from this Wednesday’s RBNZ decision. Because the NZDUSD has been range bound for quite some time, I’ll consider any favorable buy or sell signals that form at key levels until conditions warrant a new approach.
Long
by Daily-Price-Action
NZDUSD Potential Range Break Opportunity This WeekThe NZDUSD could offer a range break opportunity this week. Despite gaining 125 pips following a more dovish than expected Fed, the pair fell short of overtaking the 0.7040 handle. Buyers also just barely missed out on a weekly bullish engulfing pattern. But despite the near miss, the rally that started on Wednesday may not be done just yet. In fact, given the technicals over the last few months, I’m favoring a break to the upside. However, I won’t enter until I see a daily close above 0.7040. Until that time comes, I’ll remain on the sideline. If we do get a bullish break from this range, a move toward resistance at 0.7133 would be the likely outcome. This level served as support twice last month as well as the first day of March. Key support for the week ahead comes in at Thursday’s low near 0.6970. This area served as a pivot in early January and is also the November 2016 low.
by Daily-Price-Action
so glad we did this!!Morning guys, Weekend is almost over and I will be enjoying the last few hours before the markets opens and another action packed week begins. Recent rallies have been quickly sold implying NZD cannot remain at these higher levels against the dollar. November confirmed the negative momentum and after yesterdays rate further enhancing the negative outlook for weeks to come. have attached the previous nzdusd chart for comparison purposes, all the best with this position into the new year. Likes and comments always appreciated!
Short
by TheBanker
11