NZDUSD: Channel Break to Promise Deeper Bullish Correction


[B]Strategy: Pending Short[/B]

NZDUSD put in a Bullish Engulfing above formidable support at the intersection of a falling trend line connecting swing lows since November, the 0.6811-0.6878 congestion region, and the bottom of a near-term falling channel that has been guiding the pair lower since it carved out a top in January. Prices are now testing channel resistance at 0.6991, with a break higher exposing the 0.7144 level. Positive RSI divergence bolsters the case for a bullish correction we will stand aside for now and look for selling opportunities as upward momentum is exhausted.

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