NZDUSD Starting to Look Top Heavy at Channel Resistance

by Justin Bennett  · 

November 4, 2016

by Justin Bennett  · 

November 4, 2016

by Justin Bennett  · 

November 4, 2016


Just the other day I mentioned the possibility that the NZDUSD has been carving out a five-month head and shoulders reversal. While hardly confirmed, I do suspect the pair will face some headwinds at current levels.

For example, I made the following post inside of the member’s area on Wednesday.

my-post

This is a simple technique that I wrote a lesson on a while back. All we’re doing is extending a parallel level from the two swing lows to find a potential area of resistance.

Flash forward to today, and we can see that the pair is beginning to struggle in the area outlined above.

nzdusdh4_new2

Channel resistance also lines up with several prominent highs from August and September. This doesn’t mean prices will reverse from here, but it does illustrate a confluence of resistance that will surely put up a good fight.

On top of that, the 1-hour chart is starting to look top heavy. I very rarely look at a time frame below the 4 hour, but after seeing the formation below, I felt inclined to comment on it.

The structure could indicate a short-term reversal, or it could be nothing at all. But if sellers manage a close below this 1-hour trend line, chances are we’ll see the pair give back at least a portion of recent gains.

Want to see how we are trading this setup? Click here to get lifetime access.

NZDUSD 1-hour reversal


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