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Levels To Short NZD/USD?

Published 02/20/2017, 01:02 AM
Updated 01/13/2022, 05:55 AM
NZD/USD
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At the end of January, kiwi was looking very toppy as NZD/USD pushed into a confluence of resistance.

Looking at the daily chart from back then, you can see price pushing into both trend line resistance as well as the horizontal zone. Both levels combined to cap further gains and as we said in that January blog post, the way price made a lower high AND lower low each time after capping out at resistance, was fairly telling.

The daily shows the confluence of higher time frame resistance we were talking about:

NZD/USD Daily:
NZD/USD Daily Chart
Click on chart to see a larger view.

The hourly shows the confluence of higher time frame resistance holding, and price rejecting down from it.

From here, we have lower time frame, previous short term support turned resistance. Combined with higher time frame resistance, this is the obvious spot to short:

NZD/USD Hourly:
NZD/USD Hourly Chart

And finally, the 15 minute chart shows a further intraday level holding where an add on entry could look to be taken off and most importantly, risk managed around:

NZD/USD 15 Minute:
NZD/USD 15 Minute Chart

How are you looking to trade the kiwi?

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