NZDUSD double top?
The NZDUSD currency pair looks like it could be forming a near double top formation.
Price is close to closing as a bearish engulfing pattern and given the placement, at the previous swing high, we could be in for some downside. The US dollar has seen gains across the board today and this would be a logical area for price to give some kind of retrace price action.
Anyone trading short from this area should be wary of the resistance turned support just below the daily low. A subsequent daily close below this level would potentially encourage NZD bears to push price lower. It is also worth noting that the NZD interest rate dropped recently and any further cuts could potentially drive this pair lower
EURUSD has closed around 180 pips lower on the day, showing dollar strength, and with the dollar index at a major support level anything is possible from here.
Nick can be found writing and trading at his forex blog
