Forex Marketz Daily Forex News – Fully Markets Update
Some points to consider in this Forex market:
- The Kiwi Dollar is trying to finish a bullish flag chart pattern and resume its bounce higher against the US Dollar.
- Bullish move confirmed after breakout. Could lead to a short sale.
- Trade strategy: Stand aside
The NZD/USD Forex market is in the process of forming a flag continuation pattern. If this is confirmed, with a breakout, would confirm a continuation of a move higher from the September low price points. This would put the NZD/USD on a path to test the longer-term falling trend line set back in July of 2014.
Technical Analysis
Let’s discuss today’s NZD/USD technical analysis. The flag top resistance is lining up at 0.6757. A daily close above this technical level challenges the next technical resistance at 0.6895. The alternative NZD/USD technical analysis, should the New Zealand Dollar move lower, notes technical support located at 0.6645. A break below this support level challenges a cluster support area starting at the flag bottom. This area runs from 0.6565 to 0.6602.
Trade Strategy
Now let’s look at today’s NZD/USD trade strategy. From a risk to reward analysis, there is no short or long NZD trade at this time, and here is why. For one thing, price action is too close to a technical resistance level. Another point indicating no available trade is the absence of a bullish breakout confirmation. Therefore no long NZD trade. There is no bearish reversal signal at this time. A short NZD sale would be premature. I will opt to stand aside and watch my charts for a better trade opportunity to come along. Right now, I am flat in the NZD/USD Forex market.
