Direct from the desk of Dane Williams.
Back into the forex currency crosses today, with a higher time frame look at AUD/NZD.
AUD/NZD Daily:
Just look at that bullish trend from the lows at the start of March to where we are now.
I think it's safe to say that the bulls are large and in charge over here.
Price has now hit resistance at previous swing highs and pulled back to retest a previous resistance zone as support.
When you look at these two zones on the daily chart, they do look a little close - Just 125 pips between the centre lines.
But the fact that the bulls look so in charge of this market, I'm happy to use this current zone to make a play for an early breakout to new highs.
If it does hold and the bulls remain as in charge as they have been, the risk:reward on a breakout to new highs could be excellent.
After zooming into the hourly chart, I can already see an area of short term resistance turned support that we can use as an entry signal and risk management point.
Can you?
Best of probabilities to you,
Dane.
FOREX BROKR | Hive Blog
Higher time frame market analysis.