Let’s give another round of happy snaps to Big Pippin’ for pointing out this divergence + trend line play on Kiwi:
I guess this means I should hold on to my long NZD/USD swing trade then?
The pair found support at the .7700 major psychological level, which was right in line with the trend line and just enough to close the weekend gap. With price making higher lows and stochastic making lower lows, a bullish divergence has formed, hinting that NZD/USD could be headed further north. The next area of interest seems to be at the .7800 handle but, for the sake of my long trade, I’m keeping my fingers crossed that it heads much higher than that!