Orders for reader Mike included.
All joking aside there’s plenty of people who trade this pair and I haven’t looked at it for a while so here goes.
We’ve been following the long term support line from March 2011 through May 2012 for the best part of June and July.
The 200 wma has also helped the pair keep it’s trousers on.
I last wrote about the pair back in June when reader Alex highlighted the levels to watch Technical trade of the day goes to reader Alex for NZD/USD.
It was a cracking trade (that I missed by 2 pips) and could have resulted in just under 400 pips profit.
The pair has been under pressure along side the aussie so it’s no surprise to see it languishing back at the support level. While the first move down to the line was a very good technical trade to get on, the picture is less clear now. In general you can still profit from trading off the line but you have either got to play with deeper pockets, riding a long under or keep things tight playing a short break.
The pressure is still on while the aussie remains under the cosh with the macroeconomic picture being roughly the same as the neighbours.
Levels to watch
Offers are seen in size at 0.7900 after falling back below overnight with stops now placed above orders at 0.7940 and 0.7970. Stops are seen to the down side on a break of 0.7840. Macro funds were said to be the sellers down.
Resistance
- 0.8047 res
- 0.7992/00 res and 55 dma
- 0.7948 res
- 0.7931 strong res
Support
- 0.7865 200 H4ma
- 0.7850 sup
- 0.7827 55 H4ma
- 0.7805 100 H4ma
- 0.7794 sup
- 0.7770/75 long term sup line, 200 wma
- 0.7751 sup
