SigmaTrading

USDNZD Long Setup & Analysis

Long
FX_IDC:USDNZD   U.S. Dollar / New Zealand Dollar
We have a pretty interesting situation with the USD/NZD pair and this can open a few opportunities which we can capitalize from. From a COT perspective the New Zealand Dollar is in a neutral position. Neither long nor short contracts dominate the market and this gives a chance for the US Dollar to shine. A further decline in gold price may be a signal for the beginning of the USD recovery.

From a technical perspective price has been in a closed triangle since 2015 and a second upper trendline has finally formed from the multiple false breakouts during the COVID-19 Pandemic spikes.
Right now, price has reached the 1.4900 zone, where it met with the bottom trendline of the closed triangle and with the monthly critical demand zone .

We will follow this scenario:
1. If we see a strong monthly close, price will move towards the 1.7000 area, where we have a triple confirmation point- the 0.618 Fibonacci level, a monthly supply zone and the crossover of two monthly trendlines . Since there are a lot of visible monthly (and one daily) critical supply/demand levels, price will build new HH according to them.
If this scenario happens, we can achieve a win with more than 1600 pips.

If you like my analysis, please leave a like, follow or comment.
Happy Trading!

Comments

premium info, thank you for sharing. upvoted!
+1 Reply
SigmaTrading ProjectSyndicate
@ProjectSyndicate, thanks man!
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar About Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Private Messages Chat Sign Out