For traders who read my May 18 update on why I’m bullish on the NZD/USD, here’s an alternative, intraday set up to take advantage of a rally.
The resistance along the 0.8000 level will present a particular challenge to NZD/USD bulls however a break through a “00” can attract more buying momentum and that’s partially what will be needed. What else? Add to that a U.S. Dollar breakdown through 76.00 and higher commodities prices through either an equities rally or dollar weakness and the NZD/USD will propel higher continuing what has mostly been a two-month rally before the recent mid-May consolidation.
The support of the pattern has three levels to rest on: The support of the 34EMA Wave and the uptrend line support at 0.7900 and the”00″ major psychological level itself.