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NZDUSD: Watching 0.7040 for Directional Cues

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Exactly one week ago the NZDUSD closed the day back above the 0.7040/5 area. The break came after the March 15th rally fell short of overcoming the region and the pair subsequently sold off on March 16th.

However, last Tuesday’s session appears to have closed back below 0.7040/5. This suggests that the Monday break above the area was a false move.

Furthermore, the final 72 hours of activity last week was once again capped by 0.7040/5 on a daily closing basis. The result was a weekly bearish pin bar, albeit not at a major swing high.

Fast forward to today, and we can see that buyers are once again challenging the level. But as you may well know, I don’t pay much attention to intraday breaks such as this. Where the pair closes the session at 5 pm EST is much more important.

For now, I’ll remain on the sideline until we have a clear indication of whether 0.7040/5 is holding as new resistance. If so, we could have a selling opportunity on our hands.

Otherwise, a close back above the area would pave the way for a retest of 0.7133. This level served as support on two occasions in the second half of February and again on March 1st.

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NZDUSD daily chart

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4 comments
MARY says

DO YOUR LIFETIME MEMBERS GET THE ENTRY AND EXITS

Reply
    Justin Bennett says

    Mary, no, it isn’t a signal service. I try to push members to learn the material so they can one day become independent traders, which should be the goal of everyone in this business.

    Reply
jacob says

Hi its quit funny to me that i reason the same way your reasoning when it comes to support and resistant levels though am not one o your member or student ,after doing my drawings and coming back to look at yours its like we were together doing the same thing but the problem with me is that am still not making profit in forex trading,what could be the course of this.

Reply
    Justin Bennett says

    Jacob, glad to hear that but only you know why you aren’t profitable yet. That isn’t something I can answer for you.

    Reply
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