On Wednesday (April 20) I wrote “The appreciation of the NZDUSD has been significant over the last few days and I can see some weakness if the 0.7000 level fails to hold. The 240 min chart shows the retrace from the upper Bollinger band overnight and a Target 1 area of 0.69500 (20 DMA) and possibly to Target 2 at 0.69038 (50 DMA)”
The 0.7000 did indeed fail to hold and the pair subsequently retraced to Target 1 and Target 2 for a net gain of 96.7 pips. The energy of the retrace has been as strong as the leg up so the potential reversal LONG trade was not triggered as the candle closed below the lower range of my potential buy zone.
Interestingly, ( I do use that word a lot) the longer term DAILY uptrend remains intact as the 20 DMA seems to be providing support and the pair remain in the upper half of the Bollinger band, let’s see how we finish today and the week.
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Chief Market Analyst
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About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
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