Will NZDUSD Trade Through 0.6200?

Mon 20th February 2023 : Daily Currency Strength Analysis

In Today’s Video we’re looking at Trading Setups in:

• NZDUSD
• NZDCHF (Covered in Video)

Will NZDUSD Trade Through 0.6200?

In today’s forex strength video we identified that the New Zealand Dollar (NZD) is our weakest currency and the United States Dollar (USD) is our strongest.

The last time we featured NZDUSD for a short opportunity it fell 100 pips from our resistance zone.

Currently price is trading around the key support of 0.6200.

The daily chart shows a bullish rejection of the level on Friday.

However, the H4 Chart shows price forming lower highs. 

This means we could see the price retest the key support of 0.6200.

Day traders could look for short term opportunities down to the level again.

Trend traders should wait to see if the price traded through the 0.6200 and re-tests the support as resistance.

Technical Observations

• The USD is S1 and NZD is W1 on the day traders table.
• Price has recently rejected 0.6300 and fell down to 0.6200.
• Fridays close was  a bullish rejection of 0.6200.
• H4 chart has potential to form a double bottom pattern.
• This could give day traders a short term opportunity to the support again.
• Trend traders should wait for a break and retest.