Weekly Trading Signal: NZDUSD

NZDUSD: BUY

The condition on the NZDUSD pair is very much favorable to the bulls right now. Until recently, the pair was trending in a downward manner (as shown by the EMA 56). During the recent and protracted bearish run on the market, the price was not able to trend lower than the demand level at 0.8161. That means that the bearish strength was getting thinned out. Last week, the bears eventually gave way as the pair shrugged off any bearish influence on it. It later crossed the EMA 56 to the upside, closed above it and has been trending higher since then. The RSI period 14 has also crossed the level 50 to the upside. What next? Since the price closed above the EMA 56, it has journeyed upwards by more than 130 pips; and there is more room for this northward journey to go. This is still considered to be an early trend, so joining it right now may be logical. Any normal bearish corrections along the way ought not to take the price lower than the demand level at 0.81876 (otherwise the outlook in this piece would be rendered ineffectual). Ultimately, the price could reach the supply levels of 0.8587 and 0.8987.

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