Today I’m going to show you the NZDUSD key areas I’m watching as we head into Wednesday’s FOMC volatility.
I’ll share a significant fakeout that occurred last week that could influence this week’s direction following tomorrow’s events.
Watch the NZDUSD video below and scroll down for the annotated charts and analysis.
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The New Zealand dollar closed above a significant trend line from 2021 last week.
However, NZDUSD bulls failed to hold the pair above the 0.6290 level, confirming a fakeout ahead of the weekend.
That fakeout could lead to a lower NZDUSD following Wednesday’s FOMC.
Keep in mind that we’re likely to see significant volatility for the US dollar within the next 24 hours, making trading any major currency pair unfavorable.
That said, a retest of the 0.6240 resistance area following the FOMC volatility could set up a favorable short opportunity.
As mentioned in today’s video above, the 2022 trend line at 0.6100 could serve as a “magnet” for NZDUSD.
That will be my target if we get a confirmed short setup in the coming days.
Alternatively, a reclaim of 0.6240 and 0.6280 would negate the bearish bias.
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