NZDUSD gets a slap round the chops but we can still trade the levels
The RBNZ pulled the rug out from under its currency after cutting rates last night. There's a nice big gap on the lower timeframe charts for all you gappers but it's the monthly chart I want to start with
NZDUSD monthly
There's been a historical S&R level at 0.6964 that goes all the way back to 2003. The low today is 0.6968. Despite being a funny number it's a level that has worked and has held a move once again and even after the RBNZ cut. That's the power of tech sometimes, where a big move stretches the market's limits in where it wants to go and is used to say enough is enough, for now.
So what other levels can we play now. The 50.0 fib on the 2009 swing up is at 0.6863 and above, the 2009 trend line acted as resistance before the RBNZ announcement
NZDUSD H1 chart
That gives us a pretty decent range to play, if the price plays ball. If it doesn't then we can still play the break
Technical analysis is a great way to define your risk, as my colleague Greg is happy to repeat continuously. It's alos a wa y to remove some of the fear that I spoke about earlier
