Tuesday, May 22, 2018

I Expect A NZD/USD Rally

On the W1 and the Daily time frame the pair reached a local support at 0.6850 and after breaking out above the trend channel that it formed from 1st May 2018 to 15th May 2018 (on the H4 time frame, marked in red) it began an movement to the upside.

I expect the pair will test the support at 0.6850 once more after which it may begin a move north to 0.7050 – 0.7060 (which is 38.2% Fibo of the last depreciation from 0.73947 to 0.68506).

To the upside after the resistance at 0.7950 – 0.7060 follows the strong resistance at 61.8% Fibo in the zone around 0.7150 – 0.7170.

To the downside the next strong support is around 0.6800 – 0.6780.