Direct from the desk of Dane Williams.
Have you seen the Aussie/Kiwi daily chart?
AUD/NZD Daily:
That higher time frame support/resistance zone is still perfectly capping price and putting the pair in play for a possible short trade.
AUD/NZD Intraday Price Action
Now we have a higher time frame zone in play, lets zoom into an intraday chart and take a look at the price action.
Remember the AUD/NZD clean price action that I went over the last time we spoke about the pair?
AUD/NZD Hourly - Previous:
You can then see that right on Friday's Asian session open, price perfectly retested previous support as resistance (to the pip!), before continuing lower.
You've gotta love those perfect retests, don't you.
Well if you missed the opportunity to trade it, as price so often does, it's given us a second chance to trade around the zone.
AUD/NZD Hourly - Current:
With price below the higher time frame zone, we're looking to short.
To refine our entry we wait for a short term support zone to form and then short off a retest as resistance.
This keeps us trading in the right direction alongside larger flows and allows us to manage our risk tightly.
Let's see how this one plays out.
Best of probabilities to you,
Dane.
FOREX BROKR | LeoFinance Blog
Daily market analysis.