Let’s call these milestone levels
Call them milestone levels but I hope these levels stopping EURUSD, NZDUSD and AUDUSD will finally be broken to shift the market into a new phase. Otherwise we are stuck in this range since 2015 till date.
I reported earlier that EURUSD has a problem level. It is a level that the pair has a hard time clearing – save for less than 3 months out of the past two and a half years.
Well EURUSD is not the only pair that has such a level, AUDUSD and NZDUSD have their own as well. It is also evident from price action displayed by both pairs that the market is eyeing these levels. For NZDUSD, it was a near perfect touch, AUDUSD a slight miss.
For AUDUSD, this is a big level, I have covered it here previously.
Now I am just wondering what is the best way to describe these levels. Call them resistance and in a few days, I am going to end up looking for some kind of short setup which will put me into a counter trend mode. This would suggest that these pairs are going to fall although week-week and month-month basis, they are still trending up.
If I recognise that all three EURUSD, NZDUSD and AUDUSD are still trending up, maybe potential target might be more appropriate but then maybe I am going to end up a little too bullish – all three pairs are still on a downtrend on a year – year basis.
Let’s do with milestone level. If the levels are broken, we might just be able to enjoy a change from the action we had since the last 12-24 months i.e. break level, test the extreme end, consolidate, go further, new 52-week high and so on. If not, then we have to put up with that ranging buy low sell high action that we were stuck with since 2015.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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