NZD/USD - Short from supply zone
Looking at the daily chart I am looking for another test of the supply area at .74400 which coincides with the .618 fib. Price has also rejected from the 20EMA. We can see historically that this level has held price off for quite some time.
The reason I am waiting for another test is because the initial rejection was not as strong as I would have expected. If the next rejection is smaller we will see sellers leaving the market.
If price breaks the area we could be looking at a short term reversal as the weekly chart is showing strong rejection from .71600 after some positive fundamentals.
The reason I am waiting for another test is because the initial rejection was not as strong as I would have expected. If the next rejection is smaller we will see sellers leaving the market.
If price breaks the area we could be looking at a short term reversal as the weekly chart is showing strong rejection from .71600 after some positive fundamentals.