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NZDUSD: Friday Breakout Underway

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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

On May 10th I discussed the breakout potential for NZDUSD.

The descending channel that extends from the March highs couldn’t last forever. That’s especially true when you consider its narrow range.

Sure enough, today’s session is breaking out.

However, it’s Friday and today is far from over, so I’m in no hurry to buy NZDUSD.

But I do think the pair has breakout potential for next week.

Buyers do need to climb back above the 0.6590 horizontal level before they can garner more attention from the market, though.

That said, dropping below 0.6590 wasn’t as bearish as some may believe.

The range low for NZDUSD is technically the October 2018 low at 0.6425.

So if buyers can keep prices well bid next week, it would signal a higher low for the pair with respect to the broader multi-year range.

Want access to the same New York close Forex charts I use? Go here.

I’m going to keep an eye on NZDUSD for next week.

I don’t want to enter before the long holiday weekend, nor will I enter without a pullback of some sort.

On top of that, any entry here will be a starter position.

It doesn’t make sense to scale in with any kind of size until NZDUSD buyers prove themselves.

That would involve a daily close back above 0.6590, in my opinion.

And if they can clear 0.6590, there isn’t much to prevent a retest of 0.6720.

All eyes will be on today’s close. That will be the determining factor for next week’s outlook.

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NZDUSD descending channel on the daily time frame

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6 comments
Justin Bennett says

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murad shaikh says

I believe close above 0.6590 for today is impossible… It is difficult for me… How did… 0.6590 arrive to you.

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    Justin Bennett says

    I didn’t say anything about a 0.6590 close today. Buyers only need a close above 0.6525 to clear the channel. Have another look at the post.

    Reply
Ali says

Thanks justin I will be waiting for your weekly chart for next week.

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Muhammad Hamza says

great

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    Lusankula says

    I see a pull back has developed

    Reply
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