NZDUSD Daily Chart Drops A Bearish Rejection Candle @ Important Level

I woke up this morning with the usual set of alerts from the Battle Station, but I did notice one from the NZDUSD.

If you were following along, I did put out a watch notice for this chart, saying we should keep a close eye on the level price is approaching for sell signals.

Well today a big fat sell signal formed right here at this important level. You can see its technical significance on the daily chart, where recent strong support is now being respected as resistance.

We can see the level now holding resistive properties due to the bearish rejection candle showing denial of higher prices past this level.

Now the challenge is to see if we can get a retracement entry before this signal does heat up and cause a down move.

Of course, there is always the chance of the setup now working out,  so our safety caps are always on – using a logical, rational stop loss.

Good luck on the charts guys.