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NZDUSD: Keep an Eye on This Channel

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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

The short-term downtrend on NZDUSD began on March 21st.

That was when the pair reached the range resistance that has been in place since January.

And at the other end, NZDUSD just recently bounced from range support.

Here’s a view of that 350 pip range:

NZDUSD range on the daily time frame

During this latest selloff, the pair has carved a descending channel.

The 4-hour time frame shows the pattern best.

Now, I’m by no means saying the NZDUSD is about to turn higher.

But it is imperative that sellers keep prices inside this channel in order to maintain the short-term bearish momentum.

If buyers manage a 4-hour close above channel resistance, we could see NZDUSD pop higher to at least the 0.6720 region.

For now, though, all eyes are (back) on range support at 0.6590.

If that support level fails on a daily closing basis, we could be looking at another run at 0.6510 and perhaps 0.6430.

Regardless of where the pair goes from here, though, I think the 4-hour channel below is worth keeping an eye on.

The NZDUSD is one for my watch list, but not much more than that.

I don’t want to short the pair above range support at 0.6590.

At the same time, I’m not willing to play the 350 pip range as long as the price is below channel resistance.

With that in mind, I’ll remain a spectator until I have a reason to act.

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NZDUSD 4-hour descending channel

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13 comments
Justin Bennett says

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imran says

New Zealand currency will be by?

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    Justin Bennett says

    It’s all in the post above.

    Reply
Praise says

Well noted. Sir

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Jabulani says

Good day, my name is Jabulani from South Africa I have been following your link, for me your analysis are the best comparing the people that I know.. Keep up the good work and stay blessed

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    Alan Wakelin says

    I am also a South African, and yes, I like what I see on these mails, only joined recently, good insight and good vision.

    Reply
    Justin Bennett says

    Thanks for sharing. Cheers.

    Reply
Mahaveer singh says

Hi sir Justin…..u are AWESOME
May god bless u and your FAMILY. Stay bless

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    Justin Bennett says

    Cheers, Mahaveer. Take care.

    Reply
Mansha says

Thank you, sir,

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    Justin Bennett says

    You’re welcome.

    Reply
OGBORO preciouslife says

Nice one

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Kenny Jay says

Can you check this pair . Seen it still play around 0.6590 support .

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