Daily Price Action
Shares

NZDUSD: How Long Can Sellers Keep This Up?

Shares

Do you recall what happened to NZDUSD on July 30?

The pair closed below ascending channel support that extends from the mid-June swing low.

At the time, that 0.6490 area was the year-to-date low.

I wrote about this breakdown on the 29th stating that a close below 0.6630 would expose 0.6490.

The NZDUSD reached our 140-pip target on August 5.

But that was just the start.

On August 5, I wrote about how the 0.6590 area was likely to attract sellers.

Sure enough, NZDUSD hit a session high of 0.6589 on the 6th before selling off hard over the next 24 hours.

In that post, we also discussed how this continuation pattern could trigger a move as low as 0.6350.

Sellers reached that level on August 26.

So where to from here?

Now that the bearish flag pattern has played out, we could see NZDUSD claw back some losses.

That said, the downtrend is intact below that 0.6350 area. You can see how sellers defended it as new resistance on Thursday.

It’s going to take a daily close above 0.6350 to ease the selling pressure.

However, I also wouldn’t be surprised to see the pair tag the 0.6250 region before garnering attention from buyers.

Notice how 0.6200/50 was a critical support area for NZDUSD in August and September of 2015.

I’m not opposed to trading this both ways, but I do need to see what happens here between 0.6200/50 and 0.6350 before making a decision.

Want to see how we’re trading NZDUSD? 

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

Leave a Comment:

3 comments
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

Reply
babar says

hi sir…i want to jion your primium pckage ..but the fee is very high…i am a poor i dosent manage it..plese consion with me…

Reply
Zojon says

Sir. I like to mastering my trading skill in one particular currency pair. It will be a good idea and which pair u suggest me. Thanks

Reply
Add Your Reply