Trapped Traders® Daily Analysis – Selling NZD/USD

Selling NZDUSD – Current Market Price: 0.6746

The trap we’re going to look at today is what I call a trap break pullback, which occurred in this area here. Traders at the hard right edge would’ve believed that this historical level of support was acting as support again on NZDUSD, as it came into that level and bounced. However, as you can see, it didn’t follow through, but it did provide those traders with some entry cheese, which is confirming price action that gets them in off the sidelines to take some risk because it would’ve looked like it was working, and those traders are now trapped as price crashes against their position.

So, if we get a pullback in here, this looks like a pretty good place to get short.

NZDUSD trapped traders tradersdna

Source: Forex Traders Daily