In a post from last week about the NZD/USD (link here) we pointed out the important resistance area between 0.72-0.73. After the FOMC announcements last night the NZD/USD has reached very close to 0.73 where a long-term downward sloping trend line resistance is found. Price got rejected as we expected and I believe a bigger reversal has already started. Confirmation will come with the break of the short-term bullish channel and the break below the 4 hour Kumo support at 0.7150.

If you have also read my analysis on the Dollar index, you will know I am a Dollar bull at current levels. The Dollar is oversold and with divergence signs that warn me not to be bearish the Dollar. For the NZD/USD, I expect at least a pull back towards 0.7050.

Print Friendly, PDF & Email

Related Posts