Strategy: Flat
NZDUSD has taken out out major resistance at the intersection of rising trend line support-turned-resistance set from the May 2010 bottom and the top of a falling channel established from October’s high. Prices are now poised to challenge October’s swing high at 0.7975, with a weekly close above that securing a meaningful bullish reversal. With that in mind, daily relative strength studies (not shown) are at their most overbought since the pair was at these very levels five months ago, hinting (at least) a pullback may be due. We will stand aside for now to see how things develop over the coming days.
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