Direct from the desk of Dane Williams.
I'm just enjoying a Sunday morning coffee as I flick through my charts to prepare for Monday morning's open, but there really isn't going to be a lot for me to do tomorrow.
With no short term trading opportunities jumping out at me, I thought I'd take the time to highlight the importance of higher time frame support/resistance zones.
Take a look at the Kiwi weekly below.
NZD/USD Weekly:
There's only one horizontal zone that matters on that chart and funnily enough, I've previously called it the most significant NZD/USD zone in the pair's history.
A statement I stand behind because of how significant the moves have been around the zone in both directions, for the last decade and more.
Now zoom into the daily and let's look at the more recent Kiwi price action.
NZD/USD Daily:
See the way that when price breaks through the zone, it breaks hard with momentum? Just the one, large candle through it whether up or down?
Support/resistance zones aren't impenetrable barriers. They're going to get broken.
This doesn't weaken them or mean they need to be deleted. If price moves through them hard after respecting them such as we see here, then it actually highlights their significance.
Keep this one on your charts and when price returns, we'll be back.
Best of probabilities to you,
Dane.
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Higher time frame market analysis.
