The NZD/USD pair broke to the upside during the session on Tuesday, breaking the top of the shooting star from late last week. With that being the case, it appears the market is breaking out to the upside in general, and now we have broken above the resistance area that has been keep in this market down for a few sessions now. I believe that a break above the 0.85 level was in fact important, so that being the case it makes sense that we would continue to go higher.
I think that there is a significant amount of support below, probably between the 0.85 level and the 0.84 level, and possibly even lower than that. With that in mind, I am bullish of this pair and have no interest in selling at the moment. I just think there is far too much in the way of support below in order to consider selling, and as a result I am “long only.”
Buying on the dips also.
Since this market is broken above the shooting star from last week, I feel that a lot of resistance has been smash through, so any move at this point time should continue to have slight pullbacks, but there should be buyers willing to step into this marketplace and pick it up as time goes on. I believe that ultimately the market goes all the way to the 0.90 level, but it won’t necessarily happen overnight.
However, keep in mind that the New Zealand dollar does tend to move rather quickly at times. We can go sideways for a long period of time, and then suddenly clear three candles. I don’t know that’s was going to happen right now, but the pair is one of the least liquid of the major ones, so be careful about shorting this pair at this point time as I believe the buyers will continue to enter, even if we get some type of nice short-term sell signal. Because of this, I am planning on adding into the position in slight increments on short-term charts.
