Daily Price Action
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NZDUSD Breaks Wedge Support, Targets Channel Floor

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A little patience goes a long way as a Forex trader. This has never been more true after watching the last three days of price action on NZDUSD.

I mentioned the ascending channel you see below on Tuesday, noting that it was a bit too soon to make a commitment one way or the other. And although the three-month price structure is still intact, the pair is one step closer to choosing a final direction.

NZDUSD ascending channel on the daily chart

If we move down to the 4-hour chart, we can see a rising wedge that extends from the March 16th low. With the pair failing to hold above support, traders can begin watching for selling opportunities on a move lower toward the channel floor near 0.6760.

However, being that it’s Friday and considering the huge gaps we saw last weekend, I won’t entertain the idea of a position until Monday. Once the new trading week begins, we can reassess the situation.

For those interested in a trade that could last a bit longer (days or even weeks), there is another New Zealand dollar pair that has finally broken free from consolidation on the back of NZD weakness. More on this and other currency pairs in the upcoming weekly forecast.

As far as NZDUSD is concerned, I will be interested to see how former wedge support holds up as new resistance at the start of next week.

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NZDUSD 4-hour rising wedge

Leave a Comment:

9 comments
Carol Capner says

Good call Justin.
The Monthly, Weekly and Daily are about or are in a down trend. The 60 Minute has just hit a low, so I’ll wait till Monday and have another look at the trade and if still good; which it should be, I’ll trade off the daily – my favourite time frame. cant’t remember what EMA’s you use? I only use the StochasticRSI.

Reply
    Justin Bennett says

    Carol, I use the 10 and 20 EMAs.

    Reply
Carol Capner says

Sorry Justin,
I do use Fibs and trendlines 🙂

Reply
    Justin Bennett says

    Carol, it’s a good way to trade.

    Reply
R says

I have to say that you are the BEST in price action analysis.

Reply
    Justin Bennett says

    Thank you. Much appreciated!

    Reply
Carol Capner says

Thanks for letting me know about the EMA’s. Could I ask which one is the Red – ?10

Reply
    Justin Bennett says

    Carol, you got it. The 10 is red and the 20 is blue.

    Reply
Carol Capner says

I really had considered selling this pair, but I now feel It has gone very low on the Daily Chart. I like to sell high and buy low.

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