The NZD/USD range on its 1-hour time frame is still intact, as the pair just made a test of resistance this time around.
The pair has been moving between the .7700 area as support and resistance around .7830. The pair jumped to the top of the range but quickly turned as stochastic headed back down. The oscillator is still headed south, which suggests that Kiwi bears are in control of price action.
If that’s the case, NZD/USD could make another test of the bottom of the range near .7700. That’s more than 100 pips from its current levels and a tight stop above the previous day high could yield a good reward-to-risk ratio for a day trade.
Bear in mind though, that the US will be releasing its NFP report in today’s US session and that US traders are just about to return from their Fourth of July holiday, which could mean additional volatility for this pair.
By Kate Curtis from Trader’s Way