Tanalys

NZD/USD on Lookout for a Top This Week

240 Minute Bars

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: Wrote last week that “the near term NZDUSD pattern has been clean. A flat is either complete or close to complete. Today’s top is right at the 61.8% retracement of the decline from .8675 but I’m not ruling out another run at the uncovered close from 4/12 at .8586 (close to the 78.6% retracement at .8608) along with the final topping in the SP.” .8586 remains of interest along with the 78.6% retracement at .8608.

FOREXTrading Strategy: Blindly shorting into levels usually isn’t a good idea with NZDUSD given its tendency to go on extended runs, break levels and THEN reverse. However, the preponderance of evidence (long term channel and trendline, exhaustion high and reversal) suggests we act. Order to short at .8630 with an .8710 stop.

LEVELS: .8469 .8514 .8541 .8574/86 .8630 .8675

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