On March 10th, I mentioned the breakout potential of NZDUSD.
The multi-year wedge sample was going to offer us with a breakout, by some means.
The ground of that wedge extends from the 2000 lows with the ceiling coming off of the 2014 excessive.
Hours after I wrote the March 10th post, I shorted the NZDUSD simply above the 0.6300 deal with.
I shared this entry with Daily Price Action members within the NZDUSD discussion board.
Right here’s what I wrote to members on March 10th:
I adopted that remark by stating that NZDUSD has 1,000+ pip (draw back) potential, which I nonetheless imagine to be true.
I took a partial revenue on the place final week when it was greater than 600 pips within the inexperienced.
When you watched Sunday’s forecast video, you realize 0.5650 is help.
It’s a degree that has influenced the NZDUSD since 1998.
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Check out the month-to-month time-frame between 1998 and 2003 to get a way of why I take into account 0.5650 to be so important.
It’s no shock then to see the NZDUSD rallying from 0.5650 this week.
On Sunday, I additionally mentioned how 0.5920 and 0.6200 are each key resistance ranges to regulate.
0.5920 was key help for the pair between 2004 and 2006, whereas 0.6200 is the underside of that multi-year channel flooring from the 2000 lows.
These are two ranges (0.5920 and 0.6200) that might produce quick alternatives within the coming days and weeks.
Within the meantime, nevertheless, I’d prefer to see NZDUSD larger.
That might assist to substantiate the short-term descending channel I’ve drawn within the chart under.
Discover that the NZDUSD examined the underside of that descending channel on March 19th.
If this sample is critical, a transfer to 0.5920 and even 0.6200 wouldn’t be a shock.
In abstract, NZDUSD might strengthen within the short-term whereas above 0.5650, however the long-term downtrend is undamaged with resistance at 0.5920 and 0.6200.
— to dailypriceaction.com