The ForexGuy's  Instablog

The ForexGuy
Send Message
I have been involved with Forex trading for about 6 years now and after being disappointed with mainstream indicators I discovered price action trading relatively early in my career. Since then I have made price action the focus of my Forex trading, embracing it with a passion. I don't like... More
My company:
The Forex Guy
My blog:
The Forex Guy
  • NZDUSD Squeezing Into Resistance, Looking To Buy Bullish Breakouts 0 comments
    Apr 14, 2014 10:33 PM

    (click to enlarge)nzsusd squeezing into resistance

    NZDUSD has been a buyers market for the last few months with price holding above the mean value and making new highs as it steps up into the chart. RIght now the market is interacting with a stubborn resistance level which has managed to contain price for the last few weeks.

    While the mean value still maintains the buoyancy of price and holds as dynamic support, a situation has developed where the momentum of the mean value an the market has jammed price between the resistance level and the mean value. Both are containing price but eventually something will give. Generally it's the momentum of the mean value that will be the dominating force in the market, so in this case we're anticipating breakouts to the high side.

    The last two daily candles have also showed rejection of the lower prices, reinforcing our bias for an upside breakout. If price breaks past the high's of the rejection candles, it could trigger the breakout to the high side. Taking advantage of asia session retracements could get you into a better price ahead of a breakout, but it's a little bit more risky in this case because essentially price could break in either direction.

Back To The ForexGuy's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »


More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.