# NZD/USD Shallow Bullish Divergence (May 28, 2014)

Source: https://www.tradersway.com/resources/market-info/nzd-usd-shallow-bullish-divergence-may-28-2014/
Language: en
Updated: 2014-05-28

NZD/USD might be due for a bounce this week, as the US gears up to release a downward revision in its Q1 GDP reading. The figure was initially reported at 0.1% but analysts predict that the second version could show a downgrade to -0.6%, effectively showing an economic contraction for the period.



This could trigger a rally for NZD/USD back to the previous highs around the .8700 levels. Stochastic is showing a shallow bullish divergence, as the oscillator made higher lows while price made lower lows.



On the other hand, a break could lead to a sharper selloff if the GDP reading comes in strong. There are no reports due from New Zealand this week but data from the economy has been relatively strong.



![NZD/USD Shallow Bullish Divergence (May 28, 2014)]



Going long at the current levels and aiming for .8700 with a 50-pip stop could yield at least a 3:1 return on risk.



*By Kate Curtis from Trader’s Way*