I have been looking at NZDUSD since last week. Mmy trading idea from last week was based on NZDUSD, too. The RBZ news announcement might have taken you out of this position (I intended to place my SL below 0.6825). Or, you might have placed your SL below 0.6800, in which case you would not have been stopped out. I was monitoring the price action after RBZ and the support level was still holding well. The price was slightly below it, but still not broken firmly, which was an initial indication for me that a bottom might have been reached. You should not rush though, because you need a price action confirmation before you can act with more certainty.
Now I am looking at a possible new NZDUSD setup. The price did not go lower and has been on the rise since then. As you can see from the screenshot, it looks like it might be bottoming out. The daily candle from Friday is a long-legged doji (showing indecision). Today’s candle is most likely going to be a bullish candle. One way or another, I will be looking for a small retracement (after daily close) if I am going to enter in another long trade. A good level for me would be 0.6865. I would be looking to place my SL just below 0.6815. My first target would be the level of 0.7050. As you can see from the screenshot above, the next resistance level (take profit zone) is the level of 0.7350.
This material is written for educational purposes only. By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever. Trading and Investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader. The author may or may not have positions in Financial Instruments discussed in this newsletter. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results.
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