We might have a possible bearish opportunity here for the NZDUSD. This trade is almost like the AUDUSD trade I have also mention slight differences here. I believe that price will still make the the trend line on the Daily charts.Price could start creating a flag pattern, not pretty but still techincal. We also have Daily Bollinger band duplication area bringing us to the last support around .8030. We have resistance around .82389 - .82644 on the H4 charts which use to be strong support. It is around this area that we could get a Bearish Hidden Divergence. If we go down to the H1 charts we can see that we have a straight move from Bollinger band to Bollinger band with no correction which signals me that we should get ready to sell. Our opportunity will could take place on the M15 chart giving us a nice intraday opportunity. If we go down to the M15 chart we can see that there is a divergence being built, we also have more than 20 candles riding the Bollinger band and RSI is extreme. Look for candle stick pattern around .8264 before entering. Target could be the H1 20MA. We keep Bearish scenario for this because of the Daily chart but if the levels won't hold we will have to re-analyze. Daily levels being .8264.
NZDUSD trade setup for March 08, 2012
NZD/USD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3