The
NZDUSD has been trading in a range and has recently corrected lower from
resistance levels as visible in this D1 chart. This
currency pair has formed a
double bottom formation and we expect it to rally back into its
50 DMA and potentially back into its resistance level. Furthermore, the last candle stick formed a
spinning top at its ascending
200 DMA which acts as additional
support.
MACD has remained
bearish which we expect to turn around as this pair starts to move higher.
RSI is trading in
oversold territory and a breakout from current conditions should accelerate the rally back into resistance levels.
We recommend a long position at 0.8185 which would be an addition to our existing long position which we took on February 15th at 0.8530. We also advise traders to place a
stop sell order using half the volume of the combined longs at 0.8130.
Traders who wish to exit this trade at a loss are advised to place their
stop loss level at 0.8130. We do not use stop loss levels and will execute this trade as recommended. Place your
take profit level at 0.8330.
Here are the reasons we believe this pair will move higher- NZDUSD forex pair formed double bottom
- Double bottom enforced by ascending 200 DMA
- Latest candlestick formed a spinning bottom at support
- RSI indicates oversold level
- Short covering rally due to profit taking
