Direct from the desk of Dane Williams.
A few weeks ago we were looking to short NZD/USD as price approached higher time frame resistance. At the time, the zone didn't end up holding and the Kiwi bulls blasted price higher.
But over the last couple of days, price has caught my attention by pulling back underneath the zone once again. Just take a look at the Kiwi daily below.
NZD/USD Daily:
With price being capped by resistance, it looks to me as if shorts are back in play once again. Let's hope with a different outcome this time, huh!
Zoom into an intraday chart and let's take a look at the price action.
NZD/USD Hourly:
I like the fact that price has pushed completely down through the higher time frame zone, before pulling back to retest it where we are now.
It's in this retest that I've found the last short term area of support before the drop, that when retested as resistance we can use to short into.
There's potential here for some excellent risk:reward, so let's see how this one plays out.
Best of probabilities to you,
Dane.
FOREX BROKR | Hive Blog
Higher time frame market analysis.