Ask me questions here : http://forum.mt5.com/showthread.php?129814-Analytical-reviews-by-Dean-Leo-discussions-and-questions-to-the-authorWe take an in-depth look on NZD/USD to see if there are any trading opportunities available for us to trade…
- Amid the previous events, the price is still trading between the levels of 0.7162 and 0.7226. The NZD/USD pair movement was controversial as it took place in a narrow sideways channel for a while. The market showed signs of instability. On the H1 chart, the daily resistance and support are seen at the levels of 0.7226 and 0.7162 respectively. In consequence, it is recommended to be cautious while placing orders in this area. Thus, we should wait until the sideways channel is completed. The price spot of 0.7226 remains a significant resistance zone. Thereafter, there is a chance that the NZD/USD pair will move to the downside. The fall structure does not look corrective. Resistance is seen at the level of 0.7226 today. So, sell below 0.7226 with the first target at 0.7190 to test yesterday’s bottom.
In overall, we still prefer the bearish scenario as long as the price is below the level of 0.7190. Furthermore, if the NZD/USD pair is able to break out the bottom at 0.7190; the market will decline further to 0.7162. Also, it should be noted that the double bottom is seen at 0.7134.
On the other hand, stop loss should always be taken into account accordingly. It will be beneficial to set the stop loss above the last bullish wave at the level of 0.7226.
The material has been provided by InstaForex Company – www.instaforex.com
Get a £20 welcome bonus to try out the Plus 500 CFD trading platform, No deposit is required! Simply register a real money account at plus500, enter your mobile number and receive a validation code by SMS. Try out CFD trading on forex,stocks,commodities and more with no risk. *T&Cs apply - see the plus500 website here for more info.