Currency Analyst since 2010

NZD/USD: trading opportunity

By Felipe Erazo

The NZD/USD has entered a phase of consolidation bullish above the 23.6 Fibonacci retracement level. Furthermore, this pair is located above the SMA 500 ​​at the H1 chart, so the bullish outlook is currently dominate the trend in the NZD/USD. If the pair manages to make a breakout on the resistance level of $0.8718 placed at the 61.8 Fibo level expansion, It’s expected to rise to the level of $0.8787 (100.0 Fibo level expansion).

On the other hand, it is very likely that the Kiwi start making deeper bearish corrective movements, so the NZD/USD could fall to the level of $0.8608, which coincides with the 50.0 Fibo Level. If the pair manages to make a breakout at that level, the bullish outlook could be void. However, caution should be exercised when placing buy orders at current levels, as the CCI indicator is showing a bullish divergence.

Trading recommendations: Place buy orders only if the NZD/USD makes a breakout at the resistance level of $0.8718, with a take profit at the $0.8787, which coincides with the 100.0. Fibo expansion level.

Chart. H1 NZD/USD

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