NZD/USD: Sellers Lose Momentum, April Top in Play
Strategy: Pending Short
NZDUSD has rebounded and now looks set to test resistance near April’s swing high (0.7333) once again. A move above this boundary will expose the 0.74 figure. However, we also note the outlines of a Rising Wedge formation, a setup indicative of bearish reversal, though we’ve yet to see confirmation in negative RSI divergence. On balance, our bias still favors the downside and we will continue looking for viable selling opportunities. Initial support lines up at 0.7149, the 76.4% Fibonacci retracement of the 04/30-05/25 selloff.
To discuss these strategies with other traders, please visit the Candlestick Forum
To receive future articles by email, please contact Ilya at firstname.lastname@example.org
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.