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Potential for a Cut and Reverse in AUD/NZD
When a higher time frame level fails, the setup doesn’t have to be discarded. If the higher time frame level is strong, don’t ever discount a cut and reverse strategy to play the level from the opposite side. We have one such example of this strategy playing out on the AUD/NZD chart today. The daily chart shows the key AUD/NZD level that’s in play. As you can see, price has broken higher through the zone formed by previous swing high resistance, and then pulled back to retest it on the other side. But after failing to make a new higher high, price has dropped straight to the bottom of the zone and is looking ... (full story)