Sunday, April 26, 2015
New Signal NZD/USD
As of 04/26/2015 @ 21:30 EST
The Global Currency Scalper is watching NZD/USD for a potential big move, favoring the downside. As you can see from the chart above this pair has been in a downtrend since August of 2014 although recently a bid has been found, indicated by the higher lows being set since early March of 2015.
The NZD/USD has also been setting lower highs as shown by the green line, these tops could prove to be too much to overcome and enable the shorts to prevail. As the two trend-lines converge they are getting closer in distance, setting up for a powerful move. The Global Currency Scalper is favoring the short side for this trade but we will be prepared to act with a breakout to the upside as well.
We have set alerts just below the green line and just above the red line to give us a price warning. The Global Currency Scalper will be looking for a close below the red line or above the green line before taking action. Since we are favoring a short trade we would like to see this pair close below 0.75500 as of today but as the days go by this price will rise along the red trend-line.
Also giving us confidence for a short trade is from the Fibonacci levels as shown on the chart below. As you can see this pair has retraced to the 38.2% level and has failed to maintain price action above it. The NZD/USD has recently fallen from this Fibonacci level and could attempt to rollover in the coming days. We could be in for a wait of a few days to a week or more as the apex on these charts in not until mid-May 2015. But as these two lines converge the battle between buyers and sellers will eventually be won by either side creating a potentially strong move. We could potentially see a 300 - 400 pip move.
The Global Currency Scalper will be looking to short with a close below 0.75500 with a stop of 0.77450 and a forecast of 0.71600. As mentioned above we will also be open to taking a long position as soon as we get a close above the red trend-line.