Tuesday, March 17, 2015

Double top on the NZD/USD?

The New Zealand Dollar versus the US Dollar has been trading within a well-defined range between the 0.7400 and the 0.7300. On the last two visits that the price made to the 0.7400 area, we can notice that it has not been able to break above that level and stay over it. Now the price has come back to the 0.7300 level and it has formed what it appears to be a double top pattern. The confirmation line or neckline is right on the 0.7300 level, which indicates that a possible breakdown of that level could take the price all the way to the 0.7200 zone, which has been a very important support level for the pair. 


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