Recurring levels in AUD and NZD pairs at weekly time frame
AUD and NZD pairs show recurring, high probability levels on weekly charts, and have a lot of significance because of duration and number of hits.
NZDUSD, NZDJPY and NZDCHF
- Last quarter break all the way to high of 0.7558 turned out to be a false/unsustainable break.
- Therefore, effective resistance is still at 73 region which was around since Q3 2016.
- Next stop previous support at mid-68 if current momentum can follow through.
- This should be a big level since it goes back to late-2015.
- If a pullback comes up, mid-70 might be a resistance based on previous price action.
- Below NZDJPY and NZDCHY weekly line charts over same duration.
AUDUSD, AUDJPY and AUDCHF
- At a glance, AUDUSD instantly comes across as much stronger than NZDUSD.
- Q3 penetration above previous resistance was much higher.
- Price is still above that resistance.
- At moment the pair is still above Q3 low.
- If there are only two forex pairs in the world, I would go short the NZDUSD and long the AUDUSD (subject to timing and level because both are equally prone to move up and down together between risk-on and risk-off mode).
- Below, AUDJPY and AUDCHF charts.
Why look at week and line charts for trend lines and horizontal levels and not anywhere else? Because end of day there are big obvious levels that have high probability outcomes. The proposition at these levels are pretty straightforward that does not need overthinking. There is a lot of noise at lower time frames and many often times, we give significance to insignificant levels because of our own imagination. Do we have to trade every time frame, every pair? No need. Just a good bet at the right place.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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