Who bought the dip before things got dippier?
If you’re looking to sell more USD in favor of riskier bets like Bitcoin (BTC) and NZD, you should first see where NZD/USD and BTC/USD are on their daily time frames.
Check out the levels you need to watch out for!
NZD/USD hit a resistance at the big .6000 psychological handle and now the pair is trading closer to .5875.As you can see, NZD’s current levels line up with the daily chart’s 200 SMA as well as an ascending channel support that hasn’t been broken since mid-October.
Oh, and check out prices also lining up with a previous resistance AND the 50% Fibonacci retracement of November’s upswing!
Buying at the first signs of bullish pressure would yield a good risk ratio especially if NZD/USD makes another attempt at the .6000 area of interest.
Not convinced that NZD/USD can sustain its uptrend? You can also make plans to short the pair as soon as you see a clear breakout below the channel.
Good luck and good trading this one!
Not only that, but $14,000 is also not far from key resistance levels that held at least once in 2018, 2019, and in 2020!
If we predict the size of the downswing based on the base of the broken descending triangle, then we could see a move all the way to the $12,000 area.
But if you believe that there are enough HODLers to prevent further BTC/USD losses, then you can also look at buying at the first signs of bullishness on the daily candlesticks, or a move back to the pre-breakout levels above $20,000.