NZD/USD surged after the price bounced from the 0.7798 support level which we covered last Friday. Note that at the time the price hit the support level, the Stochastic indicator, Commodity Channel Index (CCI) and Relative Strength Index (RSI) were showing the price was extremely oversold, which significantly increases the probability of this setup to work. The price could still move higher in today's London session, but it could be short-lived as the 200 period golden moving average is above the current price. We could also have selling opportunities, when the price hits the 200 period moving average as the long term trend is still down. The Stochastic indicator and CCI are now showing the price is currently overbought which also adds fuel to the bears.
NZD/USD surged after the price bounced from the 0.7798 support level which we covered last Friday. Note that at the time the price hit the support level, the Stochastic indicator, Commodity Channel Index (CCI) and Relative Strength Index (RSI) were showing the price was extremely oversold, which significantly increases the probability of this setup to work. The price could still move higher in today's London session, but it could be short-lived as the 200 period golden moving average is above the current price. We could also have selling opportunities, when the price hits the 200 period moving average as the long term trend is still down. The Stochastic indicator and CCI are now showing the price is currently overbought which also adds fuel to the bears.
