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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.
NZDUSD has tested channel resistance again today.
I mentioned this descending channel on May 2nd when the pair was on its way to retest horizontal support at 0.6590.
That level actually broke down on Wednesday.
You can even see where the daily chart closed below 0.6590.
However, today’s session is challenging whether or not that level will now serve as new resistance.
A daily close back above 0.6590 would be a relatively bullish sign heading into next week.
Notice too that the pair carved a 4-hour bullish pin bar just a couple of days ago.
That’s a pretty clear indication that buyers are camped out between 0.6530 and 0.6590.
But NZDUSD bulls still have to deal with channel resistance just above the 0.6600 handle.
Until that area breaks, the NZDUSD is vulnerable.
That said, if buyers can clear channel resistance over the next few sessions, there isn’t much standing between today’s price and the 0.6720 region.
That’s more than 100 pips from the current price.
Keep in mind also that today’s close represents the weekly closing price.
At the moment, buyers are keeping their head above that range support at 0.6590 on a weekly closing basis.
But if they give it up into today’s close, the weekly time frame will start to look less constructive for a move higher next week.
Like much of the market, NZDUSD is still a waiting game. However, it is one worth keeping an eye on if buyers can come through.
Justin Bennett is an internationally recognized Forex trader with 10+ years of experience. He's been interviewed by Stocks & Commodities Magazine as a featured trader for the month and is mentioned weekly by Forex Factory next to publications from CNN and Bloomberg. Justin created Daily Price Action in 2014 and has since grown the monthly readership to over 100,000 Forex traders and has personally mentored more than 3,000 students.Read more...
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