FOREX Chart Of The Day: NZDUSD- Will The Price Breakout Of The Range?
#NZDUSD has been in a tight trading range for some time now, with sentiment indicators suggesting the retail market is short.
This could lead to a breakout to the upside.
Watch the video to find out why?…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
In this video, I’m going to go through NZD/USD. I’ve looked at this market for a while. The market is in this overall trading range. From highs, around 72510s, down to lows here, around 0.71, and the market’s bouncing between these two points at the moment. However, I want to look for the market’s potential to break out because I want to trade the trends.
The daily timeframe’s overall trend is to the upside, we can see that the market is making its way higher, but we’ve approached this resistance level and the price has now started to consolidate.
Now, I wanted to note that the sentiment indexes suggested that the retail traders are heavily short here at the moment, and that’s usually a sign that the price could continue to the upside. What I’m looking for in this area is for the price to break out, retest, and go long around this area.
First targets will be up around 0.73 but essentially, I want to see the market breakout of this high first, break out of the range, highs, and move higher.
We want to note that the number of times the price has recently retested this structure high compared to the lows. So, we have four to five tests here to try and break to the upside, and the price has failed to do so. On the downside, we have had one, two and three touches through here, but the lower zone you’ve seen one touch.
Typically, when we look at support and resistance levels, you’ll find that if you have a support and resistance level and the price keeps trying to penetrate that level, eventually, we will see that break. It’s almost like a sledgehammer on a wall; keeps hitting that, hitting, and eventually it will break through the wall. I’m exactly looking at it here as well on NZD/USD, to add a little bit more confluence, the fact that the price is trying to break through this level several times. It could easily break to the upside here.
Keep an eye on NZD/USD. I’d set an alert around 7255 to 7260. If price can break to the upside, this will be your way to potentially get involved with NZD/USD to the long side.
Thanks for watching this video update. If you did like it, please leave a thumbs-up. Drop in the comment section below on what you think about NZD/USD, do you think it will reject the resistance or break out to the upside? Thanks for watching. I’ll speak to you soon.
Apply what you learned from this Forex Chart Of The Day in your future trades with NZD/USD. The good news is you can test your trading strategy risk-free. Sign up for a free Blueberry Markets demo account by clicking here.