NZDUSD is a gentler currency pair to trade. It tends to obey long term support and resistance zones really well. NZD is a high interest yielding currency with interest rate at 2.50%. So when a trade is opened to long or buy NZD, you earn daily interest. The interest earned really builds up if you can hold the trade for weeks and months. This strategy is called the "carry trade" and is used by many professional traders.
NZDUSD is at a crossroad junction now. On one hand, it is resisted by the down trend line on the daily chart. On the other hand, it is also forming an up trend line on the 4hr chart. Here are my conditions which i want to see before i go long on this pair.
- NZDUSD breaks above and stays above the down trendline on the daily chart.
- NZDUSD retraces and holds at support zone of 0.8000-60.
- NZDUSD forms a third point on the up trendline on the 4hr chart.