There’s not much action going on with NZDUSD so this will just be a quick post. It’s pretty much confirmed this pair will go in one direction only and that is down. The last few posts I’ve made on this pair showed a break below support and breakout of a wedge or ascending trend-line. In other words, New Zealand Dollar is looking rather bearish. Right now traders should be looking to sell. You want to be selling as this pair is making a slight pull back to a relatively affordable price.
It is time to be in the swing trader’s mindset. You want to ride the wave and then close out your position as the price swings back before making another wave. In this case, we just might be seeing the end of the swing back. My trade was a bit early and so that’s reflected in the lower volume posted. How do we know this swing back is ending? First of all, we have established that the trend is down. The recent price movement looks like an upswing. Finally, two bearish candles appear along the dashed line 65 period simple moving average acting as a dynamic resistance. With that said, it’s time to ride another wave.
*I apologize for the photo size, seems to be an attachment issue
