NZD/USD: trade idea
• NZD/USD reverses from resistance zone
• Next sell target - 0.7200
NZD/USD recently reversed up sharply after the pair reached the sell target 0.7200, which was set in our earlier forecast for this currency pair. The weekly upward correction from the support level 0.7200 recently stopped at the resistance zone lying between the resistance levels 0.7450 and 0.7400 (as you can see from the weekly NZD/USD chart below). This resistance zone was further strengthened by the 38.2% Fibonacci Correction of the previous weekly minor impulse 3 from the start of this year.
If the pair closes this week near the current levels – it will form the strong weekly Japanese candlesticks reversal pattern – Falling Star Doji. Such bearish signal will heighten the probability of further losses in the direction of the earlier sell target 0.7200. Sell stop-loss can be placed above 0.7450.