NZDUSD Breakout Update
- NZDUSD Breaks Through Daily Resistance
- Breakouts Signaled Above .7837
- Range Reversals Triggered Under .7809
CHFJPY 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
Suggested Reading: Trading Intraday Market Reversals
The NZDUSD quickly reversed overnight from its daily trend, breaking out to higher highs. Price swiftly moved through R4 resistance at .7837, and has moved as much as 91 pips to its standing daily high at a price of .7928. Even though price has already moved through resistance, momentum traders will keep a bullish bias as long as price remains above the R4 pivot. Retracement traders may also take advantage of pullbacks in price to identify new trading opportunities.
In the event that price moves back into today’s trading range, the NZDUSD would be signaling an end to current breakout conditions. A drop below the R3 pivot, at a price of .7809, would signal a potential move back to range support at .7754. In this scenario, all breakout trades should be concluded with day traders opting to place new orders in the direction of the markets current daily trend.
Yesterday began with the CHFJPY traversing between key lines of range support and resistance. After one final test of support, price broke below the R4 pivot providing opportunities for both momentum and breakout traders. Price continued to move towards lower lows through the close, and is currently attempting to breakout. To learn more about yesterday’s action, check out Wednesday’s FX Reversal article linked below.
Then, to practice setting up orders using Camarilla Pivots, register for a FREE Forex demo with FXCM. This way you can develop your day trading techniques while tracking the market in real time.
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---Written by Walker England, Trading Instructor
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.