Talking Points
NZDUSD Opens in a 90 Pip Range
Range Resistance is Found at .7814
Breakouts Signaled Under .7678
NZDUSD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
Suggested Reading: Trading Intraday Market Reversals
The NZDUSD has started Tuesday’s trading traversing inside a 90 pip range. Currently price is still traversing between support and resistance values as defined by the camarilla pivots depicted above. Currently resistance is standing at the R3 pivot at a price of .7814. Range support is found at the S3 pivot at a price of .7724. As long as price remains between these values, and the market fails to breakout, traders can continue to look for range reversals at these points.
In the event that prices does breakout, traders can begin to look for bigger shifts in market price. A below the S4 pivot at a price of .7678, would signal a move to a lower low in the direction of the pairs daily trend. A move above the R4 pivot at .7860 would signal a break to a higher high, along with a broader reversal against the NZDUSD’s prevailing trend. In either breakout scenario, all range based orders should be concluded with day traders opting to place new orders with the markets prevailing direction.
Want to practice trading using Camarilla Pivots, register for a FREE Forex demo with FXCM. This way you can develop your day trading techniques while tracking the market in real time.
—Written by Walker England, Trading Instructor
To contact Walker, email wengland@fxcm.com. Follow me on Twitter @WEnglandFX.
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FX Reversals: NZDUSD Reversal Update
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