The Big Support Level that the NZD/USD Can’t Crack
Rowan Crosby • 1 min read
Yesterday it was the commodity currencies that provided the spark in forex markets. The NZD and CAD led the charge, with the AUD/USD also finding some bids.
The tariff battle between the US and China appears to be benefiting other exporting nations. And the NZD/USD so far has been cashing in.
Despite a rising USD, the Kiwi has outperformed which is a possible sign of things to come.
There’s a big support level at 0.7200 that we simply can’t crack at the moment.
Looking at a chart we can see that we’ve tested 0.7200, six times in 2018 alone. The argument could be looked at in two ways.
The chart is also indicating a series of lower highs. That generally means that we are setting up for a big downside break. A bearish triangle of sorts.
But as intraday traders, we can continue to use 0.7200 as support. And do so until it cracks. The biggest test saw up fall shy of 0.7150 so that to me marks a good stop loss level, albeit a little large for intraday trading.
Alternatively, we can look for a short, with a profit target at 0.7200. This is often the best trade in these situations for short-term scalpers.
NZD/USD – 240 min Chart.