Over the weekend I mentioned that we could get a range break opportunity from the NZDUSD this week. At the time the pair was trading between 0.6970 support and 0.7040/5 resistance.
Given the technical landscape of the past few months, I was favoring a break to the upside. Yesterday’s close at 0.7052 appears to have given us that upside break. As such, any bullish price action on a retest of the 0.7040/5 area could present a buying opportunity.
However, I’m hesitant to enter now given the upcoming RBNZ rate decision on Wednesday at 4 pm EST. The event is likely to cause unfavorable conditions which make an entry at the moment a little too risky.
Of course, I could miss the opportunity altogether if I wait. If that happens, I’ll look to the next key level at 0.7133. A close above that would expose the next resistance level at 0.7240.
Alternatively, a daily close back below 0.7040/5 would expose the 0.6970 handle followed by the recent swing low at 0.6890.
I’ll likely remain on the sideline until the dust settles from this Wednesday’s RBNZ decision. Because the NZDUSD has been range bound for quite some time, I’ll consider any favorable buy or sell signals that form at key levels until conditions warrant a new approach.
Given the technical landscape of the past few months, I was favoring a break to the upside. Yesterday’s close at 0.7052 appears to have given us that upside break. As such, any bullish price action on a retest of the 0.7040/5 area could present a buying opportunity.
However, I’m hesitant to enter now given the upcoming RBNZ rate decision on Wednesday at 4 pm EST. The event is likely to cause unfavorable conditions which make an entry at the moment a little too risky.
Of course, I could miss the opportunity altogether if I wait. If that happens, I’ll look to the next key level at 0.7133. A close above that would expose the next resistance level at 0.7240.
Alternatively, a daily close back below 0.7040/5 would expose the 0.6970 handle followed by the recent swing low at 0.6890.
I’ll likely remain on the sideline until the dust settles from this Wednesday’s RBNZ decision. Because the NZDUSD has been range bound for quite some time, I’ll consider any favorable buy or sell signals that form at key levels until conditions warrant a new approach.
