The Trend is Still Up for the NZD/USD
Rowan Crosby • 1 min read
Yesterday the USD managed to get a little bit of a boost after the US Government Shutdown came to an end. Although we didn’t get much of an impact over the last few sessions, there is no doubt that the politics have weighted on the USD to some degree.
With that said, the Kiwi Dollar, still managed to keep its bull trend intact and actually closed near the highs of the day. As it stands we are testing overhead resistance around the 0.7331 level.
And in my opinion, there is every chance that we will continue to break out further. Last week I pointed to the fact that the NZD/USD was still very much in an uptrend and I suggested buying the dip.
Sure enough, we fell away and bounced right off the trendline below.
Buy the Dip
Given the fact that the trend is still in place, I’m eyeing off more long positions. There are now two options. We can look for a breakout above the current resistance level. I would want to see a decent break and a pullback to what would become support above 0.7331.
Or the second option is to buy a retrace down at the 0.7300 support level. I prefer the second option, but ultimately it depends on your trading style.
Either way, I am anticipating more upside to come. The only issue would be if the USD can stage a miraculous turnaround.