NZD/USD: wait to sell
By Felipe Erazo
The NZDUSD has been in a strong bullish trend for several weeks, but it is very likely that this pair begins to make a bearish retracement to 50.0 Fibo level in the medium term, where is located in the support level of 0.8618, near the 500 EMA (red line). The NZDUSD is showing signs of weakness in the current trend, so this pair cannot do a breakout on the resistance level of 0.8834.
However, keep in mind that if the NZDUSD manages to make a breakout at the 0.8834 level, it’s expected to rise to the level of 0.8900 in the medium term, which could invalidate the bearish outlook for this pair. A good level to place buy orders, would be the support level of 0.8618 or even the 38.2 Fibo level (0.8669).
Trading recommendations: We don’t recommend to put buy orders at the moment in the NZDUSD. Wait for the formation of a higher low pattern for place sell orders until the support level of 0.8618.
Chart. H4 GBP/JPY