Last week's daily confirmed close below a key technical level was overruled by a higher time frame, the weekly. I've opted to show the weekly chart to help illustrate exactly how/why - but it all boils down to simple , Old Resistance Became a New Support.
The Trade of the Week is going to be NZDUSD Bulls - I'll lay the framework for you and let you trade it accordingly.
Weekly Chart shows why we are not surprised to see the .6875 area serve as a strong . Another view here from the daily:
4 Hour View does add a little more as far as potential buying levels, but it isn't until the 1 hour chart where we begin to see our best entry. The 4 hour
On the 1 hour chart off of the .6875 area we begin to see the strength driving this retracement. Once this strength is broken, commitment to move higher to retest that level again is likely.
A couple notes to keep in mind-
Big moves are not always followed through immediately. Market has room to play however - for bulls to stay strong price ideally will stay above .67000 for the week.
The .6880 level must be confirmed to break on not only the daily but the weekly scale as well to keep bulls in control. Without this, we are susceptible to a scenario
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