NZDUSD

Last week we spoke about the NZDUSD price action In that post price traded below a strong major resistance which was level 0.66690. Below is a link for reference. https://fxsits.com/the-nzdusd-imminent-bullish-move/. Today we can see that price has already broken past the resistance level as predicted in the previous post. The level which was once a major resistance level now acts as a support level since price is now trades above the level 0.66690.

NZDUSD Daily Chart 27 October 2020
NZDUSD Daily Chart 27 October 2020

On the H4 and daily time frame chart you will notice how price has broken past the anti-trend line. More so NZDUSD price has moved about 55pips above the resistance level. Price now holds above the level 0.66690 where it finds support. With that said we expect that level 0.67930 will be our next target. This level could possibly find major resistance at this level .If price does find resistance we could see a consolidation come in play. Also, if we see price retrace back below level 0.66690, then we could see bearish price action back to the major support level0.65128.

NZDUSD H4 Chart 27 October 2020
NZDUSD H4 Chart 27 October 2020

We still predict strong bullish price action movement of the pair in a long term. Due to the increase of covid-19 cases and the devaluation of the dollar. In the long run this will propel the New Zealand dollar to grow more stronger than the US dollar.

NB: Warning Before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consider position sizing before entering a trade and manage your risk accordingly. Please read the risk warning before deciding to trade the markets.

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