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NZDUSD Bearish Rejection Hints at a Move Lower

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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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NZDUSD bearish rejection from confluence of resistance

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9 comments
antanas says

it wil turn back to 0.68492

Reply
    Justin Bennett says

    Antanas, it might, but there are no certainties.

    Reply
Mustapha Adeniji says

nice set up sir,we all hope NZD/USD shorts,sir my question is ,is CAD/JPY setup of yesterday still valid, and the high probability of shorting still valid on this pair? thanks

Reply
    Justin Bennett says

    Mustapha, as long as it still meets your criteria.

    Reply
Vincenzo says

Hi Justin, I follow your DailyPrice Action signals on a regular basis and really enjoy it, you sure know how to Trade, thanks.

Reply
    Justin Bennett says

    Vincenzo, glad to have you around.

    Reply
Aksha says

thanks justin. Was watching this pair since quite sometime. A drop from here should be very lucrative. Love your setups. Hope to join you soon.

Reply
Senthilrajan Murugesan says

Justin,
What is stop loss for this position?
Thanks,
Senthil

Reply
    Justin Bennett says

    I don’t provide stop loss levels, but I do teach how to go about setting them in my course.

    Reply
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