Trade of The Day – NZD/USD

Facts:

NZDUSD is trading below 100-period moving average The pair broke below the key support The pair invalidated 1:1 structure

Recommendation:

Trade: Long NZDUSD at market price Target: 0.5855, 0.5930 Stop: 0.5665

Opinion:

NZDUSD has been trading in a downward trend since the beginning of June, but the pair may be experiencing a trend reversal. Looking at the pair at the H4 interval, one can see that the price broke above the upper limit of the 1:1 structure which, according to the Overbalance strategy, may herald a resumption of an upward trend. As long as the price sits above 0.5720, the further upward move is the base case scenario. We recommend going long NZDUSD at market price with two targets: 0.5855, 0.5930. We also recommend placing a stop loss order at 0.5665.

Source: xStation