NZD has been so strong since mid of December last year and this can be seen with the fact that there is no significant pulllback ever since. If we pull fibonacci tool relative from July 2017 high all the way to November 2017, you can see that it has even managed to breakout the 50% retracement leve last week, easily. On the other hand, RSI(14) indicator has been roaming in the overbought territory. The fact that it managed to breakout 3 fibonacci level easily (23.6%, 38.2%, 50.0%) indicates that the bull is really strong. But nothing will go in 1 direction forever. I'm expecting the currency to pullback next week and at least to retest 0.7166 area, which is equivalent to 50.0% retracement level. Also another interesting fact is that the 0.7166 has became support (4th September) and resistance (17th October) in the past, which clearly indicates that this could be yet another level for potential support, if the retracement were about to happen.
I would open a short position if price could go below 0.725 with SL somewhere around 0.7284 area.
I would open a short position if price could go below 0.725 with SL somewhere around 0.7284 area.
評論:
No trade in this currency pair. I cant get a reversal signal and the price keeps piercing through retracement line