After a great daily uptrend that last several weeks, NZDUSD has seen a selloff in response. The selloff initially built a 10 day mode that detached and with today's close has swiftly met the downside price projection. This swift sell-off would call for a quick rally back to the mode from which it detached, but price has cut through a high volume node (level with a high amount of transactions) and is 50 pips away from a low volume node (key level with minimal amount of transactions). While price could play pinball between these two levels for a brief amount of time, RgMov remains in an uptrend on a daily time-frame, with CCI dipping overbought. A great RR setup would be for price to drop a bit lower to the low volume node with either a hammer or doji candle pattern offering a buy at a rally above the lowest high of this selloff.
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