Resistance at 0.72351 was tested numerous times in February and price action is now flirting with this level again. If price action fails to push though this level, I expect it to move back toward the 0.382 retracement of this most recent leg up. A 0.382 retracement would bring price action within range of a previous support at 0.70538, which has served as resistance numerous times through March and April and as support in late May. The current price (0.722760) has been tested seven times in the last fifteen hours on the hourly chart. The strong resistance here may result in rejection to the down side. A tight stop loss will be held incase resistance is broken, in which case price action could shoot up very rapidly.
Trade active:
NZ news did not have a significant impact on price action, which was already starting to move down from recent highs. I have entered a short position with a stop loss at 0.72400.
Trade closed: stop reached:
Poor US data this morning sent this one right through my stop.
Also be cautioned that there is a wealth of data of varying degrees of importance coming from the US tomorrow morning, along with the FOMC rate decision.