NZD/USD Key Points
- Higher time frame, NZD/USD range.
- Price approaching top of range and holding higher time frame resistance.
- Intraday trend line break signals intraday trend change.
NZD/USD Technical Analysis
Back at it for another week. There's opportunity for us to make money in the markets day after day, week after week. Don't ever forget that when you're feeling like things aren't going your way and you think that you need to make back losses immediately.
You don't! Take your time and let the good setups come to you. Then trade them with a clear, emotionless head. This is how you make money long term trading forex.
While scanning through my charts to start the week, it's the Kiwi that's caught my eye. After NZD/USD bounced off support a few weeks ago, price has since continued to rally.
Take a look at today's updated NZD/USD daily chart:
That to me looks like the Kiwi is trading pretty rangebound. If you can't identify a clear trend just looking at the chart, then there's no point in trying to put a square peg into a round hole.
With price now approacing the top of the range, I've drawn the marked daily zone in from the green x that I've marked on the chart. You can see that was the last place that price stalled, as well as having a few significant bounces and drops from it throughout the past.
As price is approaching the top of the daily range and looking like it's respecting the marked, higher time frame resistance zone again, it's from the short side that I want to attack trading the pair.
With that in mind, let's now zoom into an intraday chart and take a look at whether price action is showing any signs of weakness that we can short. Here's the NZD/USD hourly chart:
You can see from the hourly that after rejecting out of the higher time frame zone, price broke the intraday trend line and is looking weak.
Price is looking like it's printing a new lower low and starting to retest short term support as resistance. As you know, this is always my cue to enter short because it allows me to keep a relatively tight stop and in turn, target much higher risk:reward setups.
This setup has got a bit more unfolding to do yet, but we certainly have the basis of a short right here.
Best of probabilities to you.
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