NZDUSD has shown bearish momentum following the rejection at the significant resistance area of 0.60522 on the daily chart. The currency pair is consolidating under the 0.60235 mark on the 4H chart, indicating potential for continued downside. The current retracement could provide an ideal entry for a short position, targeting lower Fibonacci levels for profit-taking.Strategy:
Entry: Look for retracement to the 0.75 Fibonacci level (0.60241) as a potential short entry zone.
Stop-Loss: A conservative stop could be placed above the 0.60522 zone, where the recent swing high has formed.
Take-Profit: Initial targets could be set near the 0.75 Fibonacci extension (0.60134) with further targets at subsequent Fibonacci extension levels.
Fundamental Outlook:
The bearish scenario for NZDUSD is supported by a strong USD, indicated by the bullish momentum of the DXY. As long as DXY maintains its strength, we expect NZDUSD to follow the high timeframe downtrend.
Risk Management:
Ensure to use appropriate risk management, adjusting position sizes to align with your personal risk tolerance. Keep an eye on upcoming economic news releases that could affect currency volatility.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.