Forex Technical
NZDUSD fighting consolidation
April 29, 2010
Gary Fichardt - FxBigDog
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Chart Analysis
How do we define consolidation? It's simple right, it means that the bulls and bears are fighting for control and no-one is winning.
On the 4 hour chart we can clearly see a war going on with the bulls and bears, but we finally see the bulls winning the battle, that is for now. Despite of the strong pullback in yesterdays trading session, the bulls managed to regain control and rallied above resistance for the second time. The question is.... can they hold??
According to the daily time frame, the NZD as an appointment with 1.7335 and higher if it holds above that consolidation.
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Analysis
When the market seems difficult to read on the lower time frames, it is better to find out what the higher and more stable time frames are technically showing.
Once you have established direction on the higher time frame as we have find with the NZD daily chart, we can then start looking for swings to following in that direction that will give us a higher probability of success.
Allow the time frames to work together in the same direction to increase your chances of success. When in doubt, stay out!!!
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