Tanalys

NZD/USD Possible Bear Trap after Break from Tight Range

Hourly

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

Wrote yesterday that “the short term range is.8270-.8325. It’s not uncommon for small range breaks to prove false (in other words-a spike through one side of the range, reversal and move the other way). A break above the range faces .8375/80 before the high. Weakness below .8270 would open up .8247 or .8216.”

The break lower was probably a bear trap that serves as a springboard for a run at .8373-.8400.

Trading Strategy: Am currently short GBPNZD (triggered @ 1.9300) with a stop at 1.9370. Also in this for a break.

LEVELS: .8216 .8242 .8270 | .8317 .8376 .8435

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