New week, new trading opportunities! Last week ended with a bang! We had a nice movements caused mostly by the fundamentals but interestingly, those important swings were happening on the crucial technical levels. Not only here, on the NZD/USD, but also on the other instruments on the Forex market.
Today, I will talk about the NZD/USD, where we do have a legitimate mid-term buy signal. The story behind it, starts in the middle of March, when the price created a false breakout pattern (orange) on the 0.7185 support (crucial since the beginning of the year). Back then, the price action gave us a first buy signal. The next one, was created when the price broke the mid-term down trend line (black, connecting lower highs since the middle of the February).The second signal received a confirmation on Friday, when the Kiwi tested the recent resistance as a closest support. In addition to the dynamic one, mentioned above, we had a static one there, on the 0.7245 (orange). That was a support taken from the first pages of every price action textbook.
The bounce in that area allows us to be very optimistic for the future. We do have a strong buy signal here, which will be present as long, as the price will stay above the 0.7245 support. The first target is the green resistance on the 0.743 (top from the 24th of January and 16th of February).
