NZD/USD Gives us a 2nd Chance, Then a 3rd Chance, Then a… | Vantage FX

NZD/USD Gives us a 2nd Chance, Then a 3rd Chance, Then a…

February 2, 2017

Earlier in the week, we highlighted this daily NZD/USD support/resistance zone. Price rallied higher and our trades either weren’t triggered because there wasn’t a proper short term retest, or you were stopped out for a 1 unit loss as the daily zone was broken.

But no daily candle could close above the level and it now looks to be a classic fake out. With the confluence of trend line and horizontal resistance, there was always going to be sellers lurking who wanted to defend the level and it looks like that’s what’s happening now.

NZD/USD Daily:
160202_nzdusd_daily
Click on chart to see a larger view.

The daily shows the higher time frame level having held and the potential plethora of open space that price has to drop down into now.

NZD/USD 15 Minute:
160202_nzdusd_daily_15minute
Click on chart to see a larger view.

From here, once again we zoom into an intraday chart to find a retest of short term previous support turned resistance. I’ve highlighted the first obvious spot in green and as you can see, the market has given multiple chances to short this level, with maybe even one more right now as we speak.

You could have shorted the higher time frame resistance zone immediately after it held, sure. But I like to look for these intraday retests purely for confirmation and so I can increase the risk:reward available on the setup. How do you trade around these higher time frame levels?

Open a live forex trading account with top Australian forex broker, Vantage FX.

Dane Williams – @VantageFX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, forex news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and FX broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

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