NZD/USD has been on a very strong uptrend since the start of the month, as the RBNZ’s hawkish remarks and risk appetite have been spporting the pair.
The pair looks ready to make another test of the trend line around the .8200 major psychological support level but stochastic is still pointing down, suggesting a stronger move lower.
Take note that the FOMC statement is scheduled for today and that this could cause a lot of volatility for dollar pairs. A taper decision might trigger a downside break of this trend line and signal the start of a downtrend.
Kiwi bulls could enter at a bounce at .8200 with a tight stop and a possible stop-and-reverse setup if the trend line breaks in the US session.
By Kate Curtis from Trader’s Way