Greetings Fellow Traders,
Last week's daily confirmed close below a key technical level was overruled by a higher time frame, the weekly. I've opted to show the weekly chart to help illustrate exactly how/why - but it all boils down to simple support and resistance, Old Resistance Became a New Support.
The Trade of the Week is going to be NZDUSD Bulls - I'll lay the framework for you and let you trade it accordingly.
Weekly Chart shows why we are not surprised to see the .6875 area serve as a strong resistance level. Another view here from the daily:
4 Hour View does add a little more as far as potential buying levels, but it isn't until the 1 hour chart where we begin to see our best entry. The 4 hour
On the 1 hour chart off of the .6875 area we begin to see the bearish strength driving this retracement. Once this strength is broken, commitment to move higher to retest that level again is likely.
A couple notes to keep in mind-
Big moves are not always followed through immediately. Market has room to play however - for bulls to stay strong price ideally will stay above .67000 for the week.
The .6880 level must be confirmed to break on not only the daily but the weekly scale as well to keep bulls in control. Without this, we are susceptible to a scenario
Feel free to comment/like/follow
Last week's daily confirmed close below a key technical level was overruled by a higher time frame, the weekly. I've opted to show the weekly chart to help illustrate exactly how/why - but it all boils down to simple support and resistance, Old Resistance Became a New Support.
The Trade of the Week is going to be NZDUSD Bulls - I'll lay the framework for you and let you trade it accordingly.
Weekly Chart shows why we are not surprised to see the .6875 area serve as a strong resistance level. Another view here from the daily:
4 Hour View does add a little more as far as potential buying levels, but it isn't until the 1 hour chart where we begin to see our best entry. The 4 hour
On the 1 hour chart off of the .6875 area we begin to see the bearish strength driving this retracement. Once this strength is broken, commitment to move higher to retest that level again is likely.
A couple notes to keep in mind-
Big moves are not always followed through immediately. Market has room to play however - for bulls to stay strong price ideally will stay above .67000 for the week.
The .6880 level must be confirmed to break on not only the daily but the weekly scale as well to keep bulls in control. Without this, we are susceptible to a scenario
Feel free to comment/like/follow
Komen:
View for this pair has not changed - after last week's trading it gives the bears a bit of an edge - but as already stated...we NEED to get that close above .68800 or for round numbers, .69000. This pair has been range bound for a long time, monthly close in less than 3 days. That close could set the tone. Strengths were redrawn as we moved lower down to just below .67000, but we're trading at .67600 right now.
Komen:
.69000 level has been broken - however it is still midweek and lots of price action to go. Look for the daily candle today to close above .68600. Ideal Entry for tomorrow will be between .68600 and .69000 depending of course on how price action continues to play out. Lower time frames have taken the necessary steps in the anticipated direction, need the daily and weekly to follow through with those steps now.
