FOREX Chart Of The Day: NZDUSD Levels Update
Did you watch our #forex market outlook video?
Well, #NZDUSD rejected a key institutional trading level we pointed out and now could be starting a new trend.
In this video we highlight the key levels to watch now as the price falls.
Watch the video to learn more…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we will take a look at NZD/USD as the price reversed from a level we spoke about previously.
In the Forex Market Outlook, we highlighted a few levels of interest this week. The first level was down here at 7183. The next level was down here at 7129, and the resistance level that we liked the look of was 7237. We want this area because the price found resistance, support, support, resistance, and resistance This was an area where the market would likely find some further resistance or break and retest.
Now, we were looking for Kiwi to move to the downside because we like the idea of buying the US Dollar at the moment. So, looking at these key levels was crucial in looking for potential reversals from this area.
Now, the price has reversed from this area. I’m looking for whether the markets can rally back up and retest for a short opportunity or a break and retest of the lower level. Now, you can see 7183; the market may break through this area, even approach 7130, break back up, retest, and then continue to the downside. I quite like the opportunity for a continuation of this move. I am waiting for a cycle change on the four-hour timeframe.
The way you could have gone short by looking at cycle changes in a lower timeframe. If I were to go to the 30-minute timeframe, you could see that when the price gets to this level, we have the initial reaction, rally back up, have a second reaction from the level, and then the 3rd reaction in here is the one that breaks the trend. I’ll be looking at this previous low in here, for instance, and say:”f the price can break and close below this low, I’ll look for a short opportunity that came in right around here, at 72221.” If you’d gone short in here, put stop losses above the highs, and targeted this level, then you would have had an excellent trade.
With Kiwi, we’re looking for a continued breakdown in the market. We have approached this level now so we may get a short-term bounce. But the risk markets are getting affected today, and we see quite a big move to the downside for the risk pairs. I’m looking for the opportunity to sell Kiwi either back at 7237 or a break or retest to 7183.
Thanks for watching. I’ll catch you in the next video.
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