Daily Price Action

NZDUSD Pullback Likely to Be Temporary


Back on October 27th, we looked at a bullish scenario for NZDUSD.

The pair was still consolidating between 0.6500 support and 0.6790 resistance.

However, a combination of factors pointed to a higher New Zealand dollar.

First was the breakout on the monthly time frame.

NZDUSD monthly time frame showing breakout
NZDUSD monthly time frame

NZDUSD broke out of this pattern in July.

And although it moved sideways for the next few months, the breakout above was fully intact.

Second, notice the false break in the chart above.

As I often say, a false break to one side of a pattern usually triggers an extended move in the opposite direction.

Because the false break was to the downside, it meant that the New Zealand dollar was likely to move higher.

That’s exactly what we’ve seen over the last few months.

But the momentum has slowed some this week as the NZDUSD pulls back from last week’s high.

Given the bullish momentum since March and the gradual selling pressure of late, I expect this pullback to be temporary.

As I’ve mentioned recently, my longer-term target for NZDUSD is 0.7500.

With that in mind, I’m viewing any pullback into 0.6940 as a buying opportunity.

If 0.6940 fails to hold, I’ll look to 0.6790.

Either way, I’ll be monitoring NZDUSD for any bottoming patterns with Daily Price Action members.

Want to Watch the NZDUSD Video I Just Released to Members?

Get a Lifetime Membership Today and receive exclusive member-only content including one to two new videos every day. Save 40% in December!

NZDUSD horizontal levels on the daily chart
NZDUSD daily time frame

Leave a Comment:

Justin Bennett says

Want me to help you become a better Forex trader?

Get a Lifetime Membership to Daily Price Action today and receive access to Justin’s full price action course, dozens of forums with over 3,000 members, daily videos of trade ideas, direct access to Justin, and much more!

Save 40% on a lifetime membership in December!

Jamal AL Nassiry says

Hi man ..To which lowest level could the pair go from now ?.Thanks.

    Justin Bennett says

    It’s all in the post.

      Jamal AL Nassiry says

      could you analyse on short term please in addition to your current long term analysis?and also I see that you do not use stop loss,could you take this into account in the future?.thanks.

        Justin Bennett says

        I trade using the higher time frames, and I do use stops. I’m not sure what makes you think I don’t.

Duncan Muthengi says

Hi Justin, I’ve always tried to reach you but i never get a response. I have an enquiry about joining DPA. Would you kindly get in touch?

Khaleeq Ur Rehman says

Thank you sir

Add Your Reply