NZDUSD Daily Price Action Analysis 08/20/14

This pair is currently in a key support area. As can be seen in the chart, it is clear that this pair is in an uptrend. And because it is currently in a support area, we might see a price reversal here from the recent down move to a continuation of the price going up. Although the recent strong move here is down, I'm still bullish with this pair and will still look for an opportunity to go long. This support area might hold or could be broken. We need to wait for a confirmation that the bulls are back and ready to take control before going long. The price action of today's candle is important. If there will be not much of a movement today, we can still wait for the next candles as long as we can have our confirmation. These confirmation of reversals are a large pin bar (rejection of the support), 2 bar reversal or a bullish engulfing bar. As mentioned, the close of today's candle is important.