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