The NZDUSD has rallied from its recent lows and formed a double top as visible in this H1 chart. This pair was driven by strong momentum and the correction should be stopped at its support line from where it can launch a second attempt to breakout to the top.
MACD has been bullish and supported the rally from its lows. Due to the strength in momentum, this pair may continue its general uptrend after the correction. RSI has reached overbought territory and hints at a pullback as well in order to keep the rally alive.
We recommend taking short position at 0.8280. This pair may continue its current rally up to 0.8350 which seems unlikely but possible. In the event of an addition to the really traders are advised to hedge their short position with a long using half the volume before adding to their short position.
Traders who wish to exit the trade at a loss as advised to place their stop loss level at 0.8350. We will stay committed to the trade as mentioned and do no use stop loss levels. Place your take profit level at 0.8230.
