Last week NZD/USD got rejected at important resistance area of 0.6750-0.67. I chose to open short positions at that level. I expected price to get rejected at the resistance trend line and at the Ichimoku cloud.
As can be seen in the weekly chart above, price remains below the Ichimoku cloud and got rejected at the long-term downward sloping blue trend-line. Important weekly support is at 0.65. Short-term support is at 0.6565 while short-term resistance is at 0.6630 where I will lock my profits.
Price is turning lower into what I expect to see a sharp decline similar to the one from 0.69 to 0.63. A break however above the downward sloping trend line will open the way for a much bigger bounce even towards 0.7250-0.7350.
Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.