NZDUSD just held a major support area a few weeks back at the 0.70 level where we have channel support, a previous resistance/support area and a .786/.886 fib level of the previous leg up. We then proceeded to break/retest the current downtrend line from 0.75 to 0.70. I am long targeting 0.75 then 0.77. 0.71 is a great stop loss and our first target will yield a 7:1 risk/reward.
Comment:
Although the USDOLLAR is bullish right now and I spoke about a short position in EURUSD. I still think the NZDUSD is a hold, with a stop loss below 0.73 below the recent pin bar. This will still allow the trade to run, which I still think has a lot more room to possibly go and the risk/reward is still great as well.
