NZDUSD: A Key Breakout Ahead?
Broadly speaking, NZDUSD has been little changed over the past seven weeks, with prices locked in a well-defined range below 0.7802. With that said, positioning has favored the downside since the pair put in a Dark Cloud Cover candlestick pattern below the 0.80 figure. Prices are now testing key support at a rising trend line set from June (now at 0.7534), with a break below this juncture acting as confirmation of a top and triggering an entry short. I will stay on the sidelines for the time being but remain on the lookout for selling opportunities.
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