I haven’t discussed the NZDUSD much since last November.
If you were a reader of this site back then, you’ll recall the inverse head and shoulders pattern that confirmed on December 2nd.
The target of that 230 pip bullish reversal pattern was 0.6660.
I made a video about this target on November 19th.
However, following the December rally, the NZDUSD became choppy.
That was especially true in early January when the pair went nowhere fast.
Since closing below 0.6570 on January 27th, though, the NZDUSD has regained its momentum.
The pair also took out the March 2019 trend line on January 29th.
Fast forward to today, and you can see how NZDUSD is attempting to take out the 0.6435 key support level.
Note that 0.6435 was the neckline of the inverse head and shoulders that developed between August and November of last year.
Notice that I said the pair is “attempting” to take out 0.6435.
If you’ve followed me for a while now, you know that most of the trading decisions I make hinge on the daily close.
That daily close refers to 5 pm EST when using New York close charts.
These charts are essential for trading price action as they give you five 24-hour sessions each week. Why would you want anything else?
Go here to get access to the Forex charts I use.
It’s especially significant when dealing with a daily and weekly close like the one we have today.
A daily close below 0.6435 would expose 0.6320 next week.
The 0.6320 level was a key pivot for NZDUSD between September and November of last year.
Alternatively, a daily close above 0.6435 would keep the level intact as support a while longer.