Tanalys

NZD/USD Unchanged after Failed Trendline Break

4Hour

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: Expectations are for a rally in order to correct the 5 wave decline from the April high. The former 4th wave extreme near .8150 is a level to keep in mind as resistance. Near term support is estimated at .7750 but the late day divergence with AUDUSD is suggestive of a turn higher.

FOREXTrading Strategy: Look higher but I actually like being long AUDUSD for the ‘snapback’ trade. The NZDUSD decline from April is impulsive and we should see a good deal of it retraced but the volatility pales in comparison to AUDUSD.

LEVELS: .7682 .7749 .7798 .7958 .8040/60 .8135

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