NZDUSD: Long-Term Setup Favors Sellers
Trading has been very choppy recently and I will take this opportunity to pull back to the weekly chart for a read on longer-term positioning. A fairly well-defined downward-sloping channel is set up from the major top in mid-October 2009, giving NZDUSD a bearish bias. The pair has done next to nothing over the past month, with prices consolidating in a narrow band near the 0.70 figure. An upswing targets the channel top, now at 0.7316, while renewed bearish momentum will see a break though the bottom at 0.6771. Either of these outcomes will be acceptable as a trigger to enter short and I will continue monitoring prices for selling opportunities.
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