NZDUSD gives price action traders a nice short opportunity to start the week off

We’re still getting our bearings after the chaos created from all the high impact news releases at the end of last week, one of those being Non-Farm Payroll. The NZDUSD came out of it all with a very nice short opportunity to kick off this week’s trading. It’s rare to get such a good signal at the start of the week. Sometimes you do get good trade setups to start of the week, but price gaps interfere with the flow of the setup. This week fortunately, there are no price gaps.

The breakdown of the situation is this; The NZDUSD has been trapped in ranging/sideways conditions for the last few months. Last week, the support level which was holding the range bottom was breached and the market broke down into new lows. Last week the market retested the old support level as new resistance. This is what we call a ‘breakout and retest’ type price action event.

The rally into resistance was rejected heavily, and the the daily candle closed as a bearish rejection candle. This setup has all ticks and there really isn’t any reason why anyone trading from the price action protocol shouldnt enter. Looking to take advantage of the asia session retracement up the signal candle to grab a nice entry price.