Although NZDUSD has been behaving oddly recently, I believe there is a great setup forming here. Last week, price action traders probably were misled by a Daily pin bar. I believe that what we are looking now might be a possible new NZDUSD interim bottom. The price did not go lower and has been on the rise since then. The daily candle from Friday is a long-legged doji, which usually shows indecision. Today’s candle is most likely going to be a bullish candle. This hypothesis should be confirmed by a daily close.
I will be looking for a small retracement (after daily close) if I am going to enter in a long trade. A good level for a long entry would be 0.6865. A good level for a stop-loss would be just below 0.6815. My first target is the level of 0.7050. As you can see from the screenshot above, the next resistance level (take profit zone) is the level of 0.7350.
Guest post by: www.colibritrader.com
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