NZDUSD: Ascending Channel into 2nd Level Resistance Test

28 May 2017

The Kiwi was my sole losing trade last week which doesn't come as a surprise. This trade features a dual level of structure which is always difficult to navigate and although I waited for a conservative entry, I also took a very conservative stop knowing that I would rather get stopped out and retry if the opportunity presented itself vs. using a bigger stop loss and taking a larger loss than I'd want to.

Similar to the GBPUSD, Kiwi is putting in an ascending channel where the buying pressure is starting to slow due to both bullish profit-taking and bearish interest at the current level of resistance. I don't know when or if I'll get the opportunity, but I would expect to see some relief in this market the closer we get to the higher level of resistance.