*NZD/USD Retraces From Key 0.7220 (Canceled)

The pair recovered some of its lost ground on Monday as fears over Dubai World’s debt subsided, as the United Arab Emirates Central Bank said it would stand behind the domestic and international lenders. Move that eased some investors’ concerns.

NZD/USD, gaped higher on Sunday’s opening levels and continued to rally to a key resistance at 0.7220 noted last Friday. The pair has declined about 60 points from the high and trades around the 0.7160 area.

With support from the U.A.E. Central Bank to Dubai, the near term outlook has shifted from Bearish to somewhat bullish. However, caution is still warranted as markets remain watchful.

From current levels 0.7160, the pair will find initial support at 0.7138 (pivot point), followed by  0.7103 and 0.7035.

Above current levels (0.7160), the pair finds initial resistance at 0.7220, followed by 0.7270 and 0.7328.

TREND

Near Term: Neutral
Medium Term: Neutral
Long Term: Bullish

Trading levels in play:

*Limit Buy order is now canceled

Limit Buy @ 0.7107 Targets: T1 0.7127 – T2 0.7220 Risk: 0.7065
* After 15 pips profit move stop to entry, take profit at will. Trade is canceled if it rebounds near entry and moves higher by 20 pips. Comments will follow if outlook changes.

DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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