500 pips : 0.6225-0.6725 : This is a strong move I rarely see with NZDUSD .
The secret behind this move is recovery of commodity price, dairy price found bottom support for Kiwi greatly while RBNZ absolutely will not cut rate anymore this year; Dollad weak is also a good reason behind the move.
However, the move should have a break time, a correction is understandable.
Next week, the main focus is NZ CPI on Thursday while we also have US CPI and US Retail Sales.
We could split the chart into 2 zones : Zone 1 and Zone 2
NZDUSD sideways in those two zones last 3 months.
I see N/U broke the zone 2 and now is trading in zone 1.
NZDUSD could choose this zone as a reaction zone next trading weeks.
Strong resistance is at 0.6725.
NZDUSD moved above SMA100 : A level we must watch , usually a break SMA100 , trend continues , but N/U is captured by , so we need wait for a break to confirm the strength of trend.
I maintain the view for Kiwi.
However, a correction is acceptable.
THE BEST STRATEGY IS:
- BUY AT THE BOTTOM OF ZONE 1 : 0.6500
- IF NZDUSD BREAKS : BUY AT THAT LEVEL.