The NZD/USD pulled a counter-trend move

Forexmentor.com Forex Trading Price Action

The ‘KIWI’ (NZD/USD) pulled a counter-trend move today. In other words, it ‘yanged.’ Yesterday, as I said it would, price topped out post-AM Review, and then swooned. That run down ended in the form of a Tom DeMark resistance (a.k.a. supply or distribution) line break – confirmed by MACD punching up through its trigger line. A Joe Cheung price projection saw price rising today to just above the M3 level, whereat it collapsed back down to M2 – the expected low for today – this being an M2/M4 day.

I still maintain that this pair has topped out, from a position trading point-of-view. From a day trading point-of-view, the dumb money will always try to put a bid on this pair, offering up opportunities to trade the ‘yang’ (counter-trend move) – the ‘yin’ being the overall trend (down). In other words, ‘always forward, never straight.’ This pair will not drop like a stone. It will meander its way down in saw-tooth fashion.

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