Happy Monday, punters.
Today were going to have a look at the NZDUSD weekly chart. We can see that for close to 2 years price has been ranging in between our areas of support and resistance, or you could say it’s a rectangle pattern. However you like to call it, we’re seeing a long term consolidation of price between the upper and lower boundaries.
As price is currently at our support zone, one could potentially trade a convincing rejection of support looking to target at least the .72 levels, or alternatively a convincing breakout below or above our S&R zones could provide a long-term trend trade.
If we jump down to the H4 timeframe, we haven’t really got a lot to go off at this point. We can see the makings of a potential ascending triangle forming, however as a personal preference, I prefer to see levels tested 3 or more times. This is certainly a pair to watch for either a range trade or if you’re more patient, a breakout trade.
Feel free to leave a comment below, and stay tuned for updates.
Enjoy the week, folks.
Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, 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 trading account of the reader. We always aim for maximum accuracy and timeliness, and 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.
Source: Vantage FX Blog