Today I’m going to show you exactly how I’m trading NZDUSD.
I’ll discuss a massive NZDUSD wedge pattern that could offer an incredible opportunity in the coming weeks.
I’ll also share insights on the US Dollar Index (DXY) breakdown on Monday and how that could impact the forex market in July.
Check out the NZDUSD video below and scroll down for the annotated charts and analysis.
Get early access to my daily analysis by subscribing to my YouTube channel and clicking the bell icon for notifications. Watch these videos 1-2 hours before everyone else!
NZDUSD is trading within a massive wedge pattern, with an upper level from April 2022 and a lower one from the 2022 lows.
The eventual break from this pattern should offer an incredible opportunity.
However, patience is key, as we don’t yet have a confirmed break and NZDUSD is trading in the middle of the current range.
There’s also a short-term descending trend line from May 22nd that comes in at 0.6215.
That level is currently serving as resistance for the New Zealand dollar.
A sustained break above that would expose the 2022 trend line resistance at 0.6280.
Although you could try to trade a breakout from 0.6215, the risk-to-reward ratio would be less than ideal.
As such, the better opportunity, in my opinion, is to wait for a sustained break either above the 2022 trend line resistance or below support.
The bullish scenario would target levels like 0.6380 and 0.6500.
Alternatively, a bearish break below the 0.6090 region would open up levels like 0.6000, 0.5870, and 0.5760.