Explanations are on the chart! Cheers happy trading =)
Note: Apologies for writing the notes down in small font, did it by accident.
Comments
moneymaking
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You still seeing it go higher? Do you use correlation into your analysis? I've been trying for the past couple of weeks, but I just keep on getting more confused. I really haven't grasped the concept of correlation that well. Any advice :)
Daniel.B
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Its tricky on whether it'll go higher, especially since its Friday its hard to say. I just use correlation to make sure I'm not doubling risk exposure when in trades by trading one pair that's correlated to another. I do use it lightly in my analysis, because it works sometimes but at times using cross currency correlation for analysis doesn't really work. Especially with an odd pairing such as GBP/NZD, I do use cross asset correlation such as bonds and equities/ commodities / FX and so forth (Sometimes bonds can give you a heads up to what is going to happen in currencies, not all the time though.) But other than that I don't use correlation in analysis for a pair such as this, it'll just make things much more confusing making you either make a bad decision or a good one out of luck. I do always keep an eye on the dollar index though, as most of FX moves depends on the dollar (not this pair). The way you have to look at it is that if this pair is at resistance than odds are that NZD/USD is at support, and vice versa.
moneymaking
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Thank you so much for the explanation Daniel. I really appreciate it :)
moneymaking
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Hey Daniel, Already long from 1.9600. Good time to add to position after retracement. Good Luck :)
Daniel.B
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Nice man! Yea I'm looking to get in on a retracement! =) Best of luck