Last week we spoke about a double inside day breakout on the NZDUSD which produced a nice bearish breakout. The setup caused a major weekly support level to break, and allow this market to maintain it’s downward momentum.
What we’ve been waiting for is a re-test of the level as the market reacts with it from the underside. The plan was to wait and see if the level will hold as resistance via bearish price action. We’ve got what we were waiting for! A bearish rejection candle formed as counter trend rally terminated and reversed off the swing level.
The bearish rejection candle has a nice negative close to its body and formed near the mean value. We’re waiting for price to break the lows of this rejection candle to consider a short position in the upcoming week’s trading.
You’ve gotta love it when the markets trend like this…