NZDUSD has been in my crosshairs for several weeks now. And as I mentioned over the weekend, the pair could offer one of the better opportunities in the days and weeks ahead given the multiple layers of resistance that lie just above current prices.
This week has (thus far) picked up right where last week left off. In the last two sessions, the pair managed to gain a total of 120 pips. But while yesterday’s rally may have been impressive on an intraday basis, the 50-pip selloff into the close tells a different story.
Although the price action doesn’t qualify as a pin bar, the long upper wick in relation to the confluence of resistance near 0.7180 does have bearish implications. A move lower from current levels would likely find a bid at 0.7053 followed by 0.6960.
I was fortunate enough to secure a short position at 0.7165 just before the pair succumbed to an increase in selling pressure above last week’s high of 0.7148. The decision of whether to hold through Thursday’s “Brexit” vote will depend heavily on the next 24 hours of price action.
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