Levels to Short NZD/USD?

February 20, 2017

At the end of January, Kiwi was looking very toppy as NZD/USD pushed into a confluence of resistance.

Looking at the daily chart from back then, you can see price pushing into both trend line resistance as well as the horizontal zone. Both levels combined to cap further gains and as we said in that January blog post, the way price made a lower high AND lower low each time after capping out at resistance, was fairly telling.

The daily shows the confluence of higher time frame resistance we were talking about:

NZD/USD Daily:
160220_nzdusd_daily
Click on chart to see a larger view.

The hourly shows the confluence of higher time frame resistance holding, and price rejecting down from it.

From here, we have lower time frame, previous short term support turned resistance. Combined with higher time frame resistance, this is the obvious spot to short:

NZD/USD Hourly:
160220_nzdusd_hourly
Click on chart to see a larger view.

And finally, the 15 minute chart shows a further intraday level holding where an add on entry could look to be taken off and most importantly, risk managed around:

NZD/USD 15 Minute:
160220_nzdusd_15minute
Click on chart to see a larger view.

How are you looking to trade the Kiwi?

Open a live trading account with top Australian forex broker, Vantage FX and trade what you see!

Dane Williams – @VantageFX

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