Quick Stutter Step Buy Targeting .8400 on NZD/USD

The strong move higher in the NZD/USD, followed by sideways price action near the top of the rally has created a clear “Stutter Step Trade” opportunity. Like a stutter step move in sports, a Stutter Step Trade is formed by a strong move in one direction, followed by a brief pause, and a continuation in the same direction. On a chart, the setup shows up as a large Bullish Marubozu candle*, followed by a small inside candle in the upper half of the Marubozu. If rates resume their rally through this morning’s highs, a quick continuation up to .8400 is probable within the next 24 hours.

Commentary from Brad Gareiss and Matt Weller, Technical Analysts, GFT