Back after a long weekend and ready to get stuck into the markets!
Straight back into it and as you can see, we’ve been watching one particular daily horizontal support/resistance level in AUD/NZD on the blog for a while.
While price has well and truly held above it now, it was this short term coiling type price action that caught my attention, shown here clearly on the 4 hourly chart:
AUD/NZD 4 Hourly:
Click on chart to see a larger view.
My only issue with this sort of coiled price type setup is that it’s almost too good to be true!
Yes, that might sound a little ridiculous but the textbook clean setups rarely hold their levels to the pip and this is largely why I preach waiting for confirmation of higher time frame levels holding and then entering on short term pullbacks.
So with that in mind, we see price above that horizontal level that’s acted as strong support/resistance on both sides dating back literally years. While price is above this level, it’s short term pullbacks we’d be looking to buy.
But with price now over 100 pips away from that level, whether you can get the risk:reward and still keep your stop under that level might be a little tough? Join the conversation and let us know how you’d look to manage your risk on AUD/NZD by mentioning @VantageFX on Twitter!
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