Is NZDUSD Set to Explode Higher? Next Stop 0.635?
NZDUSD has been in free fall since late September last year, barreling straight toward the 0.55 Monthly support—a level that’s triggered two explosive reversals before.
Could this be the third? I’m already in the trade, and here’s why I’m feeling confident.
Let’s rewind a bit. Two weeks ago, we saw a clean break of the weekly trendline. Now, this is where a lot of “textbook” traders made a rookie mistake—jumping in on the trendline break, expecting the crash to continue, only to get blindsided.
Pro tip: When you see a trend breakout, don’t chase it. Wait for the first pullback and then dive into the lower timeframes to spot divergence signals or slowing momentum. That’s how you catch the real move.
On the daily chart, this setup was screaming at me. After a brutal drop, the price action shifted from a downtrend into accumulation mode as we approached the 0.55 support.
The MACD confirmed my suspicions—it started to flatline, then flashed bullish divergence, with price moving down while the MACD crept higher.
Then came Monday’s candle, and it was chef’s kiss. The market gapped down at the open, creating a new low, but buyers swooped in and gobbled it up, pushing the price right back to where it started. That’s a textbook bullish signal.
Why does this matter?
When you see a gap down like this, after a long downtrend, inside an accumulation zone with divergence signals—BAM! It’s the market telling you the current cycle is done, and we’re shifting into a bullish phase.
Now, if you’re a cautious trader, you could wait for a break and close above 0.57 (the top of the accumulation zone).
But when you know how to read these clues, you can front-run these moves and ride the wave alongside the whales.
My targets:
First target: 0.585, the level of previous support that got taken out in December. We’ll likely see some resistance here.
Second target: 0.635, the top of the range that’s held for years.
I’m strapped in and ready for the ride. Let me know what you think below! 🚀
Could this be the third? I’m already in the trade, and here’s why I’m feeling confident.
Let’s rewind a bit. Two weeks ago, we saw a clean break of the weekly trendline. Now, this is where a lot of “textbook” traders made a rookie mistake—jumping in on the trendline break, expecting the crash to continue, only to get blindsided.
Pro tip: When you see a trend breakout, don’t chase it. Wait for the first pullback and then dive into the lower timeframes to spot divergence signals or slowing momentum. That’s how you catch the real move.
On the daily chart, this setup was screaming at me. After a brutal drop, the price action shifted from a downtrend into accumulation mode as we approached the 0.55 support.
The MACD confirmed my suspicions—it started to flatline, then flashed bullish divergence, with price moving down while the MACD crept higher.
Then came Monday’s candle, and it was chef’s kiss. The market gapped down at the open, creating a new low, but buyers swooped in and gobbled it up, pushing the price right back to where it started. That’s a textbook bullish signal.
Why does this matter?
When you see a gap down like this, after a long downtrend, inside an accumulation zone with divergence signals—BAM! It’s the market telling you the current cycle is done, and we’re shifting into a bullish phase.
Now, if you’re a cautious trader, you could wait for a break and close above 0.57 (the top of the accumulation zone).
But when you know how to read these clues, you can front-run these moves and ride the wave alongside the whales.
My targets:
First target: 0.585, the level of previous support that got taken out in December. We’ll likely see some resistance here.
Second target: 0.635, the top of the range that’s held for years.
I’m strapped in and ready for the ride. Let me know what you think below! 🚀
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Get Your FREE Copy of The Trader's Edge – Mental Strategies for Market Success! -thetradingedge.net/the-traders-edge
Join Telegram group -t.me/+T7V_JSiKKsliMTJl
Join Telegram group -t.me/+T7V_JSiKKsliMTJl
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.