NZDUSD → Long retest. High chance of a false breakdown

14 lug 2023

NZDUSD is forming a retest of the resistance at 0.63809. We seem to have a bullish trend after breaking the downtrend, but there is a high probability of a false breakdown and correction.

On the daily timeframe the price approached a strong resistance area. A retest of the 0.63800 level, formed in early May, is being formed after quite a lot of time and a large pool of liquidity has been formed above this area, which can prevent the price from going up from the first time.
The scenario is as follows: from the resistance 0.63800 may be followed by a decline either to 0.63050, or a pullback less and a quick retest of the resistance, which will form a pre-breakdown consolidation and break the level.
Countertrend trades should be opened with reduced risk. In the medium term, the price may continue to strengthen on the background of a weak dollar.

Support levels: 0.6305
Resistance levels: 0.63800, 0.6515.
I expect a correction in the near future and a slight decline to 0.236 or 0.382 fibo followed by a retest of resistance and an attempt to breakout.

Regards R. Linda!

18 lug 2023

Trade chiuso: obiettivo raggiunto