We’ve see the New Zealand dollar make a small comeback – regaining some recent losses. The market rallied off the market floor into a major resistance level.
Last session, the market attempted to breakout above resistance, but the move failed and daily candle closed back below the resistance level.
This is a sign of weakness, as the market didn’t have the strength to maintain higher prices – leaving an upper tail on yesterday’s candle.
We could see a bearish move out of this fakeout, there are also some bearish rejection candles off the resistance level sitting on the 4 hour chart.
Price Moves Above the Level and Closes
Last session I talked about a fakeout that occurred through this resistance level, and a potential bearish trade opportunity.
Nothing come of the fakeout – price regained strength, and managed to bust back through the resistance line.
Now price has closed above the level, we want to see it now act as a swing level by holding as new support on re-tests. If any price action buy signals form here, it could be a good opportunity to position into an emerging uptrend.