NZDUSD Testing Major Support

Thursdays trading plan

The NZDUSD followed its channel to the key in Asian and European trading.  The cross touched the top of the channel and then began to fall once again.  The only problem was that the cross pushed right below its support line in New York trading.  The pair is currently resting at significant support  in the .7850/40 zone.  .7850 represents the 50 fib from the June decline and .7840 is strong daily support.  A break of this level could open up the cross for a run at .382 fib level at .7758.  Resistance begins at the ascending trend line at .7960.

Sup     .7850/40

Res     .7960

Plan:  Watch the .7850/40 support zone for a hold or break.  A hold opens up a bounce higher a break exposes .7758.

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