Daily Price Action
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NZDUSD Remains Capped by Trend Line Resistance

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Despite a third straight positive day, the NZDUSD fell short of overcoming significant resistance during yesterday’s session. The level in question extends from the April 2015 high and has capped several advances in recent weeks including the pre-FOMC spike on June 14th.

To be fair buyers did take out last week’s high during yesterday’s session. However, they’ve yet to breach the June high at 0.7318. Moreover, yesterday’s close failed to hold above trend line resistance in the 0.7300 region.

Of course, that doesn’t mean the level will continue to hold. Recent advances against the 0.7300 resistance area could be a warning shot to bears that the current rally is set to extend well beyond current prices.

But we have to go with what’s in front of us and right now that’s a resistance area that continues to reject advancements. So until the 0.7300 area falls on a daily closing basis, I will continue to watch for bearish price action.

There isn’t a clear sell signal at the moment, but the NZDUSD is one I’m keeping an eye on this week. Any bearish price action up here could present a favorable opportunity to get short with an initial target of 0.7200.

I’ll also be watching the intraday charts for signs of weakness, particularly the trend line from the June 21st low.

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NZDUSD resistance area

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7 comments
Anthony says

AUDUSD is also in a similar situation, buyers are finding it difficult to break through 0.7600.

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    Justin Bennett says

    I’d agree with that, Anthony.

    Reply
Fabrizio says

Hi Justin from Fabrizio. I want only to tell you that you are very clear in the explanations. My compliments. You are really fantastic

Reply
    Justin Bennett says

    Thanks, Fabrizio. I try to take a lot of the technical jargon out of the equation so everyone can understand. It’s good to hear it’s working. Cheers.

    Reply
Mimi says

I agree with Fabrizio, you really make Forex trading easy with your to the point and simple explanations. Thanks Justin, it’s very much appreciated.

Reply
    Justin Bennett says

    You’re welcome, Mimi. It’s my pleasure.

    Reply
david hartikka says

YOUR INTUITION AND ENGINEERING ASPAC IS PRETTIE GOOD SINCE I HAVE BEEN FOLLOWING U

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