Yesterday I mentioned the 0.7040/5 area on the NZDUSD. The idea was to watch for a session close (5 pm EST) below the area to confirm it’s holding as resistance.
After jockeying back and forth for several hours, sellers made a final push that gave us a 0.7041 close. This is enough to keep the bearish pressure intact for now.
For those still searching for a favorable selling opportunity, the 4-hour chart may offer a chance. The trend line that extends from the March 14th low is once again under pressure but appears to be holding on a 4-hour closing basis.
We don’t have a confirmed setup just yet, but a close below the trend line followed by a retest as resistance could give us one. The next key support would come in at 0.6970 followed by the current 2017 low near 0.6890.
At the moment buyers are having trouble getting any traction below the 0.7040 area. Also, the price action since the March 24th retest looks quite “heavy,” which is a concept I’ve written about previously.
However, it’s important to stay patient and wait for a 4-hour close below the trend line. Until that happens, buyers still have a fighting chance, which is enough to keep me on the sideline.
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