Today we would look into the NZD/USD currency pair.
With regard to this trading instrument, there is one key level we should keep an eye on, and that is the support at 0.7205. The NZD/USD price managed to bounce off this level and turn bullish over the past day or two. According to the RSI Indicator the pair is still going in a bullish direction, staying above the pivot point of 0.7205. Even though nothing quite significant has happened to this pair this week, as long as it remains trading above 0.7205 it has the potential to make further gains.
As mentioned above, if things keep going this way and the pair remains above its pivot point, then we can base our strategy on the bullish movement. Bear in mind that we have strong support levels at 0.7159 and 0.7205. We can open buy positions and set our first target at the resistance 0.7250, and if that’s overcome prepare a second target at 0.7305. It is possible for the pair to continue rising even after that, but it likely won’t be able to overcome the level of 0.7344. Just to be on the safe side, we should also set up a stop-loss at 0.7130.
As of the moment of this article’s publication the NZD/USD is trading around 0.7309 and technical indicators are in agreement on a strong buy signal.
