The New Zealand dollar weakened a lot recently against the US dollar, but it looks like that it might be creating a short-term bottom soon. There is a major support forming around the 0.7070-60 area, which might act as a barrier for sellers in the short term. I think as long as the pair is above the mentioned support area, it could make a move higher. And, a break below it might negate the bullish view and shift the focus on searching a sell opportunity.
Technical Analysis
H4 – Monster support forming around 0.7070-60 for NZDUSD, providing us a buy opportunity.
Entry:
H4 – We can enter a buy trade for the NZDUSD pair on any minor pullbacks from the current levels. Our final target for this trade setup could be the channel top as shown in the chart below.
Target 1: 0.7160
Target 2: 0.7240
Stop Loss: A 4H close below the recent low of 0.7070.
Video Explanation:
Yours,
Vladimir
