Want FULL ACCESS To
ROSS’ DAILY TRADE ROOM?
Simply Click The Get Started Button Right Now!
Transcript of Video
Click Here to receive an email alert when Ross posts a new daily video
I’m going to get started today on the New Zealand Dollar versus the US Dollar [NZDUSD]. Starting here on the Daily Chart, we could see that the current pair is right now challenging into historical resistance. Follow it back to the left-hand side, between the 0.8480-level and 0.8514. We could see it highlighted in yellow. Left-hand side of the chart. We’re going all the way back here to the left-hand side, into October.
October we found resistance here, and saw a pretty healthy retracement back down against the overall previous uptrend. So, resistance here. Fall back down. Here we are challenging one more time into that same resistance, likely to find some resistance. At least over the past couple of days, since yesterday, and so far today we have found resistance into the low-0.8500-level and now looking at a little bit of a bounce back.
If we see a clue to reversal here, watching for clues to reversal to be what we’re looking for. Candlestick formations. Patterns that imply reversal. Then, if we do see that, we can look for it to challenge back into the last support, which would be into the last resistance zone, down here into the blue-shaded area. So, if we see enough resistance here in the yellow zone, we could likely see it back down towards 0.8400, in the blue-shaded area, targeting back down towards the blue trend line also.
Any break above 0.8510, 0.8515 likely pushing back into the 0.8575, 0.8585-level. And I mention that because if I zoom out one more time, if you follow it backwards in time, you could see the last resistance that we see back here on the left. Zoomed way out, we go all the way back into April of 2013. You could see that last resistance high over here. That also comes in contact with a trend line from the weekly chart that we looked at in the Trade Room yesterday. We’ll look at that again today. That trend line coming down from the top on the NZDUSD.
So, the trend line. Last historical high right there into the 0.8575, 0.8580-level will be be our next resistance, assuming we break through the current resistance here into the yellow-shaded area. So far it has been unable to do that. Let’s go ahead and take this information down to the 4-Hour Chart and get it back to our current time here. And there is that same resistance.
Again, what I’m looking for today are clues to resistance and reversal. Candlestick formations that imply reversal. Charting patterns that imply reversal. If the current candle turns into an engulfing candle, that could also give us a clue to reversal. If we start to see lower highs and lower lows. Right now the uptrend has higher highs and higher lows. If we start to see lower highs and lower lows, we could also expect some pullback.
And as we go back in time, the last real support that we see here is all the way down towards the 0.8400-level. We do see a little bit of congestion here into the 0.8480s, so that would be our break point. If it gets underneath 0.8480 or so, we’ll look for it to go lower. So let’s go ahead and put an arrow there. Underneath 0.8480 we’ll likely look for the turn back down towards the blue-shaded area as our next support.
So, if you’re looking to buy this currency pair today, which, at this point, I’m not really ready to do since we’re holding underneath the 0.8515 resistance. That is our historical resistance. If you’re looking to buy this pair today, you want to see either a dip to 0.8580 or so, which would be the closest support that we could see right here – this congestion – or a fall all the way back down here towards the 0.8400-level. Otherwise, holding above the yellow-shaded area today, we look for a continuation higher. The next resistance, as I mentioned, is all the way up here into 0.8580. That would be the next area for resistance for the NZDUSD.
So, as long as it holds within or underneath 0.8480, within the yellow-shaded area and underneath 0.8480, we look for a fall back down towards the 0.8400-level and the blue-shaded area. And of course at any point we see it back underneath that blue trend line, potentially we look for a change of the trend back to the sell side for the NZDUSD.
If we see an open and close above 0.8515 today, we likely look to target all the way back up here. So, selling opportunities will be as it starts to break down, giving us clues to reversal. Risk is just above the 0.8515-level for any sells that you might decide to take, targeting back to 0.8400. If you’re going to be buying this currency pair in the direction of the trend, I think your first potential opportunity to buy it would be here at 0.8480.
In fact, let’s go ahead and go down to the 1-Hour Chart. Take a look at this area right here, into the 0.8480s. You could see this area of congestion right here. If I wanted to highlight it, I would likely highlight this area right here between. In fact, let’s go ahead and put a line here and let’s put another line right here. I would highlight between 0.8485 and 0.8470 as our support. Let’s go ahead and put this arrow back underneath 0.8470 here on the 1-Hour Chart. We do see some support here into 0.8485. That becomes an opportunity. Let’s actually highlight this also like this right here, and I’ll use a different color so it’s not the same here. Let’s go with the pink color, like this. So, that will be your closest opportunity for support today.
If you’re looking to buy the NZDUSD in the direction of the trend, your closest opportunity is between 0.8470 and 0.8485. That would be your closest opportunity to buy today. Otherwise, breaking above 0.8515 becomes your next clue that it’s challenging back up towards the 0.8600-level. Underneath this pink-shaded area, underneath 0.8470, the last support low that we see right here, we likely look for a turn all the way back towards 0.8400 for the NZDUSD today.
