Daily Price Action
Shares

NZDUSD: Keep an Eye on This Channel

Shares

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.

The short-term downtrend on NZDUSD began on March 21st.

That was when the pair reached the range resistance that has been in place since January.

And at the other end, NZDUSD just recently bounced from range support.

Here’s a view of that 350 pip range:

NZDUSD range on the daily time frame

During this latest selloff, the pair has carved a descending channel.

One to two messages daily. You can unsubscribe at any time. See our privacy policy.

The 4-hour time frame shows the pattern best.

Now, I’m by no means saying the NZDUSD is about to turn higher.

But it is imperative that sellers keep prices inside this channel in order to maintain the short-term bearish momentum.

If buyers manage a 4-hour close above channel resistance, we could see NZDUSD pop higher to at least the 0.6720 region.

For now, though, all eyes are (back) on range support at 0.6590.

If that support level fails on a daily closing basis, we could be looking at another run at 0.6510 and perhaps 0.6430.

Regardless of where the pair goes from here, though, I think the 4-hour channel below is worth keeping an eye on.

The NZDUSD is one for my watch list, but not much more than that.

I don’t want to short the pair above range support at 0.6590.

At the same time, I’m not willing to play the 350 pip range as long as the price is below channel resistance.

With that in mind, I’ll remain a spectator until I have a reason to act.

Want to see how we’re trading NZDUSD? 

Click Here to join us and save 40% – Ends May 31st!

NZDUSD 4-hour descending channel

About the Author Justin Bennett

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...

follow me on:
  • Justin Bennett says:

    Now you can get access to the same professional Forex charts I use!

    Get access today: http://bit.ly/2UzPyiR

    These charts give you five 24-hour sessions each week. They are essential if you trade from the daily or 4-hour time frames. Anything else can produce false buy and sell signals.

    Download the platform here: http://bit.ly/2UzPyiR

  • imran says:

    New Zealand currency will be by?

  • Praise says:

    Well noted. Sir

  • Jabulani says:

    Good day, my name is Jabulani from South Africa I have been following your link, for me your analysis are the best comparing the people that I know.. Keep up the good work and stay blessed

    • Alan Wakelin says:

      I am also a South African, and yes, I like what I see on these mails, only joined recently, good insight and good vision.

    • Thanks for sharing. Cheers.

  • Mahaveer singh says:

    Hi sir Justin…..u are AWESOME
    May god bless u and your FAMILY. Stay bless

  • Mansha says:

    Thank you, sir,

  • OGBORO preciouslife says:

    Nice one

  • Kenny Jay says:

    Can you check this pair . Seen it still play around 0.6590 support .

  • >
    Get 40% Off Lifetime Access to Justin's Forex Community - Ends May 31st!