NZDUSD Retreats From FOMC Highs but Key Test Remains

Written by Justin Bennett

|   Last Updated September 23, 2016

·      September 23, 2016

Written by Justin Bennett 

|   Last Updated September 23, 2016


The NZDUSD has finally started to come off its recent highs following Wednesday’s dovish hints from the FOMC. I mentioned the break below trend line support on September 13th, and although buyers were more resilient than anticipated, we can clearly see that those bids are beginning to dry up.

So where to next?

As noted last week, the 0.7200 handle is the one to watch as we head into a new week of trade. A failure to hold as support would open the door for a larger move toward the June and July lows near 0.6967.

To clarify, 0.7200 is a zone that extends as high as 0.7210 to include the lows from August 22nd and July 12th among others. Nevertheless, this area does appear to be the line in the sand so to speak between buyers and sellers.

Notable event risk for the US dollar next week includes various speeches from FOMC members on Wednesday followed by third-quarter GDP on Thursday at 8:30 am EST. The New Zealand dollar, on the other hand, should enjoy a relatively quiet week, at least in terms of scheduled event risk.

Want to see how we are trading this setup? Click here to get lifetime access.

nzdusd-key-levels


Justin Bennett - founder of Daily Price Action

About the author

Justin Bennett started trading in 2002, and let's just say it was a bumpy ride. But in 2010, he had his "aha" moment once he ditched the indicators and focused 100% on price action. Justin has built a following of 100,000+ monthly readers and taught thousands of traders using his simple, no-nonsense approach. He's been highlighted as a top trader by Stocks and Commodities Magazine and regularly featured by Forex Factory next to publications from Bloomberg and CNBC. ...Read More


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