The Kiwi/Dollar Looks Ready to Move Lower

NZD/USD (0.7971)

• Resistance Levels: 0.8050, 0.8139, 0.8270
• Support Levels: 0.7870, 0.7768, 0.7680

The NZD/USD is getting ready to move lower again. See the above MT 4 daily chart. Price action is reversing after recovering, briefly, from it low set back in September. Should the Kiwi move below 0.7870 and then close below this level, then we see a challenge of 0.7768. Should the Kiwi defend the price level where it is at now, we need a daily close back above the technical level near 0.8050. This is the low set back in February 2014. This would be a bullish reversal targeting the next resistance level at 0.8139 then 0.8270.

Let us look at some trading strategy for today. Price action is close to a support level now. This means entering short positions from a risk to reward angle, is not advisable. Looking at placing a long trade now is also not a prudent move at this time as there are no strong, clear bullish reversal signals. This means you should watch your shorter term charts closely for clear signals. For example, look at the below 4 hour MT 4 chart, note the Doji forming indicating some seller hesitation. This could indicate a short term chance to buy. Absent of clear directional signals either way indicates choppy trade. In other words, buy at troughs (lows) and sell at the peaks (highs).