NZDUSD – Sells Off Heavy From Key Sell Signal and Resistance
In the first weekly commentary of this month, we talked about selling just below 8842, intuiting the bulls would take profit ahead of the all time highs and key resistance level.
We can see the pair fell much lower from the sell trade setup just below 8842, coming within 7 pips of the level. Since then it has sold off for 3 of the last 4 days, hitting our 8690 target today for +140 pips profit, so congrats to those members who shorted this for a nice profit. Using a tight stop like we suggested, of around 20 pips stop would have generated a +7R return without ever going negative.
For now, short term sentiment remains bearish as it has broken below the key support levels in 8750 and 8700. If it can push below today’s lows, then it will setup 8650 and likely a test of 8575 before finding any bulls.
