What I see
NZD/USD bounced from weekly support and has returned to the daily resistance between 0.56519 and 0.56877. Current price is 0.56722, in the middle of the zone. For now I treat this bounce as a correction within the earlier decline, not as a change of trend.
Key levels
- D1 resistance: 0.56519–0.56877
- W1 support: 0.55824–0.56144
My plan
I don't want to short blindly into resistance. The entry depends on the signal that forms in the zone. If one appears, I'll place my take profit (TP) at support, around 0.5614. My stop loss (SL) goes a few pips above the resistance, meaning above 0.56877.
If price breaks through the resistance and closes above it before I enter, the signal is invalidated and I won't look for a short.
