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.