FX.co ★ Trading plan for NZDUSD on June 20, 2022

Technical outlook:

NZDUSD dropped through 0.6270 on Friday before finding bids again. The currency pair had raised close to 0.6400 earlier after carving a potential low of around 0.6200. The Engulfing Bullish candlestick pattern holds good for now as the bulls remain poised to push towards the 0.6575 mark, the initial resistance.

NZDUSD has carved a larger degree corrective wave between 0.7465 and 0.8200. Further note that it has bounced off from just below the Fibonacci 0.618 retracement of its earlier rally between 0.5470 and 0.7465 respectively. The entire structure looks constructive for bulls to a larger degree as they prepare to proceed higher.

NZDUSD has also produced a bullish divergence on the daily RSI as marked here on the chart. Price action has followed through well by producing a bullish reversal pattern against 0.6200. Traders might remain poised to hold long positions from close to the 0.6200 mark and also add further as they target above 0.6575.

Trading plan:

Potential rally through 0.6575 against 0.6100

Good luck!