Talking Points
- NZDUSD Tests Range Resistance
- S3 Marks Range Support at .8352
- Price Over .8049 Signals a Market Breakout
GBPUSD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
After a sharp decline of the NZDUSD going into yesterdays close, the pair has remained range bound in today’s early morning U.S. session. Price first moved to S3 range support at .8352, before reversing back towards key lines of resistance. At this time, price is still below the R3 camarilla pivot near .8390. This point is currently acting as range resistance creating a 38 pip trading range for the day. As long as price continues to hold below this value, reversal traders may look for prices to return back down to support.
Traders should be aware that a price breakout above R4 or below S4 would signal a conclusion to today’s range bound environment. A move above R4 at .8409 would suggest a reversal against the pair’s current uptrend, as the NZDUSD would be working towards a higher high. Likewise a break below S4 support at .8333, would signal a return to the pair’s current downtrend. In either scenario, traders may select to conclude any range positions while looking for orders with the markets new direction.
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---Written by Walker England, Trading Instructor
To contact Walker, email instructor@dailyfx.com. Follow me on Twitter @WEnglandFX.
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Previous Market Setups:
FX Reversals: USDCAD Morning Breakout Update
FX Reversals: USDCAD Tests Support
FX Reversals: EURGBP Breaks Final Support
