The NZD/USD Getting Set to Breakout
Rowan Crosby • 1 min read
It could be argued that the NZD/USD is putting in a triple top. We’ve tested the 0.7400 level three times now and each time we’ve held.
However, I think we are simply getting ready for a breakout. Now I’m not too sure just how far that breakout will run. Potentially 0.7500 at the very least. But I do think we are setting up for a move higher.
The Kiwi has actually been on a bull run since late November. Back then we were around the 0.6800 mark. Thanks to a declining US Dollar, the run higher has been swift.
The way I’ll be playing this trade is to buy before we test the highs. That way we have the best of both worlds, even if resistance does hold up.
A long entry around 0.7300 would be a nice area if we are able to drop back that far. But just remember that this week there are some big events out there that are going to be pushing the USD around, such as the FOMC minutes.
So that is also why I like the idea of waiting on a bit of a pullback to try and get a long entry.
NZD/USD – 240 min Chart.