Welcome to our newest feature; DecaPip. The concept is simple: our professional market technician, with an exceptional system, showcases his own daily Support and Resistance levels across a broad spectrum of FX currency pairs.Please note: the featured Support and Resistance levels are not trading recommendations by Littlefish FX, but a guide to show you what a real life professional FX Swing Trader is looking for on a Weekly and Daily basis.The most effective way to use the levels:
- If indicated levels hold, look for the price to reverse.
- If levels are broken, look for the price to continue past to new highs or lows.
DecaPip Daily: 25/06/2015
In this edition of the DecaPip Daily I would like to turn our focus to the AUDNZD currency cross pair.
Yesterday the pair made a large reversal to the downside after a medium term bull run since the Reserve Bank of New Zealand cut interest rates. And crucially we now have a outside reversal day candle on the chart.Which we can clearly on the AUSNZD daily chart attached below.
What I am looking for as a swing trader is a safe point to enter the market and also to see if this is meaningful reversal and a theme I can play in the medium term if the current price looks to extend lower for a period of time if there is indeed a potential top in place.
A simplistic way to view this strategy is that this is a currency cross pair and I now need to see Australian Dollar weakness and New Zealand Dollar relative out performance across a broad basket of currency pairs for this trade to be successful.
1.1224 Resistance 1
1.1258 Resistance 2
1.1178 Support 1
1.1130 Support 2