Good afternoon traders,
Last week’s AUD/NZD cut and reverse played out nicely and with this little Aussie rally to open the week, I wanted to highlight an opportunity to get in if you missed the boat the first time around.
Click the link in the opening paragraph and take a look at the original setup, but it’s all about the following daily support/resistance zone:
The significance of the zone is pretty straightforward, but I’ve marked the swing swing high top that I’m using just to make it clear.
You can see that after failing to hold above the zone, price dropped through. But now that price has rallied back into the zone to start the week, could this be the final retest before the pair really rolls over?
Now zoom into the hourly chart:
I’ve marked the same level that we were shorting in the blog I linked to above and as you can see, price is back retesting the level again.
As long as price is below this level (which is the middle of the daily zone acting as resistance anyway), then shorts are still in play.
If this level does hold, I expect some nice momentum to come into the market and really push us lower.
Best of probabilities to you!
Dane Williams – Vantage FX
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Source: Vantage FX Blog