NZD/USD formed a top
Trade ideas
SELL 0.6580; TP 0.6565; SL 0.6595
SELL 0.6615; TP 0.6585; SL 0.6625
NZD/USD formed a big bearish candlestick yesterday. In addition, it returned below the 50-day MA and closed below the 38.2% Fibo of the advance since the end of May. The pair will likely remain volatile, but as long as it stays below the 50-day average at 0.6625, bears will feel good.
On H4, we can see a big top above 0.6610. Currently, the pair is saved from further declines by the 50- and 200-period moving averages that formed a “golden cross”. However, the top looks too heavy and the support may offer only temporary relief. As a result, we have two ideas: to sell on the break below 0.6580 (April low) or look for sell setups if the pair recovers to 0.6620. However, the second trade is not certain for now. If NZD/USD stays above 0.6580 (if the US data keeps disappointing), it may try for an inverted Head and Shoulders and attempt to revisit June highs. Still, that scenario, is far away, for now, so we focus on near-term opportunities.
