Back on January 12, the pair first reached the area of interest at 0.7490. And since price appeared to be hesitating, we had two major scenarios in mind. The first wuz that 0.7490 holds as resistance and the pair shoots lower to 0.7380. Our second scenario, meanwhile, wuz that the pair would keep going higher all the way to 0.7570, given the bullish momentum at the time. And obviously, the second scenario played out.
Anyhow, if we also take into account the most recent price action, we can see that the pair has been steadily moving higher in an ascending channel. And since the pair be at the channel’s support area already, y’all better start lookin’ for opportunities to go long. And all the more so, given that stochastic already be indicatin’ oversold conditions and all that. Know what I’m sayin? Also, the 100 SMA looks like it’s acting as dynamic support. As where the next upside destination will likely be, chances are good that bulls will be gunning for the significant area of interest at the 0.7700 major psychological level. However, 0.7570 is also a very significant area of interest, so there’s a small chance that them bears may attempt a downside channel breakout. Them bears need to smash past 0.7490, though. But if they do, they would likely be gunning for 0.7380.
Last time we checked up on NZD/USD was back on January 3. And back then, we wuz lookin’ to go long at 0.6900. And, well, price has steadily moved 320+ pips higher since then, which is real sweet. Right, dawg? Anyway, .the pair has also been moving ever higher while bouncing up and down inside that there ascending channel. However, the pair seems to have found strong resistance at 0.7220. We therefore got us two major scenarios in mind.
The first is that the pair respects the channel and continues moving higher. And the second is that the pair stages a downside breakout. Lookin’ at our technical indicators, they seem to be support the first scenario. For one, stochastic has already reached oversold territory. The moving averages, meanwhile, are currently in uptrend mode, with the 100 SMA seemingly acting as dynamic support to boot. In any case, just make sure to practice proper risk management, a’ight? Oh, by the way, a downside move needs a strong break past 0.7120, with the next area of interest at 0.6980. For a potential upside move, meanwhile, a strong move past 0.7220 could mean that bulls may be gunning for 0.7360, a price area with significant market interest.
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.