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.
On July 29th, I wrote about an NZDUSD short opportunity.
The pair was in the process of breaking below ascending channel support near 0.6630.
Our target for that breakdown was 0.6490.
Notice how today’s session has reached a low of 0.6488. Furthermore, the pair has rallied off that low quite aggressively.
With our profit of 130 pips now booked, it’s time to start thinking about where NZDUSD might go from here.
We know 0.6490 is key support.
Between the lows in May and June and today’s bounce, there’s no doubt that this area is attracting buyers.
But what about resistance?
That’s a little trickier to identify, in my opinion.
Sometimes the best way to determine a level in sideways price action like this is to take a look at the weekly time frame.
If you do that, you will quickly notice the January low and April 24th closing price of 0.6590.
Beyond that we have the 0.6660 resistance area.
So with that in mind, should you be a buyer or seller?
I can’t decide for you, but I can tell you that I’m still interested in selling the pair, but only at higher prices.
I have no interest in selling NZDUSD down here as the risk to reward ratio is less than favorable. I also think we could see further gains from the 0.6490 support area.
If the channel that formed in June and July is a continuation pattern, we could see more downside toward the 0.6350 region.
But again, I think we’re in for a rally before that scenario unfolds.
And if that 0.6590 resistance area doesn’t trigger a bearish price action signal, I will look to the 0.6660 region.
I’m in no hurry to trade NZDUSD again, so I’m okay giving the pair some time to retrace this latest selloff.
Key support on the way down includes 0.6490, 0.6420 and 0.6350.
[thrive_custom_box title=”” style=”dark” type=”color” color=”#fef5c4″ border=”fadf98″]
Want to see how we’re trading NZDUSD?
Click Here to join us and save 40% – Ends August 31st!
[/thrive_custom_box]
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
Many thanks Justin for your kind daily setups which help me to be a better trader and shows me the forex technical principles.. wishing you all the best.
You’re welcome.
my eyes on this one too
hi Justin,
i dont personallly know when to enter your trade all time because you dont use to be certain in most of your set ups.
There’s a difference between an analysis like the one above and a “setup”.
The NZDUSD commentary above is just an analysis of the levels to keep an eye on going forward.
However, my post from July 29th was a setup. We had a nice channel breakout to play off of along with a target that was a favorable distance from our entry.
See here: https://dailypriceaction.com/daily-setup/nzdusd-rally-at-risk-below-0-6630/
I like your information is good and almost correct but other we have no enough capital to supporting you bcoz other we are selftoughting
Glad you like it.
Hi Justin,
In the 29th July setup you wrote “If sellers do close today below that 0.6630 area, I will begin watching for selling opportunities on retests of it as new resistance.”
However, in my opinion a real retest of the 0.6630 area did not occur on the daily time frame. What triggered you to sell this pair and catch the 130 pips?
Thank you!
I always scale into positions. That way I have some skin in the game in case there is no retest. And if we get a retest, I can always add.
In this case, the market closed 20 pips below the level. I’m not going to miss out on a potential 130 pips because of 20 pips.