NZDUSD broke out an old high at 0.705 last week. Since then, it has been showing weak action seen by the stalling prices and high volume, and today, a low volume rally to the breakout’s price. Until something changes, I’m assuming the smart money isn’t interested in higher prices given the past action. FOMC is making a press conference today at 6pm GMT, and tomorrow at 12:30am GMT, US Unemployment claims and CPI reports are being released. Between the two, there might be an opportunity to trade NZDUSD on a small timeframe, such as M15, especially if FOMC press conference is bearish for the Dollar, which would make the prices more attractive to short.
In the last post, I analyzed AUDUSD and AUDJPY. In AUDUSD I noted that a correction would be necessary after such a movement, and would provide a buying opportunity. It showed up last night at midnight GMT in H4. More opportunities might show up today if there is a reaction to the downside. AUDJPY bounced off a previous low on high volume, meaning there was a shake-out in the market (stop hunting). Likewise, a down reaction can provide another buying opportunity.