Divergence on NZD/USD

Divergence on NZD/USD

The current technical pattern indicates the correction of the NZD/USD currency pair after a significant fall in the past two months. Near the key demand zone of 0.68000-0.68500, a fairly strong reversal formation, the MACD histogram and price divergence, (D1 timeframe) was formed. At the moment the price is testing a round level of 0.69000. We recommend you to pay attention to this situation.

If the price fixes above 0.69000, it is necessary to consider purchases of NZD/USD. The closest target for fixing profit is the local resistance level of 0.69650. In the medium term, the NZD/USD currency pair may reach the level of 0.70600-0.71400. When following a position, one should use a trailing stop. Confirmations and entry points to the market should be looked for on lower timeframes.

by JustForex, 2017.11.27

View trading ideas by the Price Action method.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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