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.

NZDUSD 8514

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    NZD/USD Technical Analysis: Testing Resistance Below 0.67

  2. Forex News

    Fed Doesn’t Relieve Anxiety, GDP Will Take Shot at Dollar and Equities

  3. Forex News

    US Dollar Risks to the Downside on a Break of these Key Levels

  4. Forex News

    US Dollar Likely to Rise After FOMC Policy Announcement

  5. Forex News

    FOMC Decision Holds Reins on Dollar and SPX, Pound Mixed after GDP

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!