Bearish Trade Setup In The NZD/USD Pair Near The Channel Resistance

There NZD/USD pair has rallied higher for the last consecutive 5 week and currently, the bullish momentum of this pair has ceased after the pair hit the channel resistance level at 0.7300.This level is going to provide a significant amount of selling pressure the Kiwi dollar as we have daily bearish pin bar rejection right at the channel resistance.

The first bearish target for this pair is the minor support level at 0.7095 and a daily closing of the price below that level will ultimately result in a deeper decline. On the contrary, a clear break of the channel top resistance level will lead this pair towards the next critical resistance level at 0.7402

NZD/USD daily chart technical analysis

NZD/USD daily technical analysis

In the above figure, you can clearly see that price has rejected the current channel resistance level for two consecutive times and most of the professional traders have already shorted the kiwi dollar with a tight stop loss just above the tail of the pin bar.

On the other hand, FED has already hiked their interest rate on the basis of 25 points and this has refueled the dollar bulls in the market. Since we have very little fundamental news release this week, we might experience ranging movement which is most likely to break in the downward direction.

For detailed price level see the original post.

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