Hey guys,
Technically, I expect the NZD to chart its way up. Keeping it simple, momentum indicators show that prices are overextended to the downside and after a 10% gain against the Kiwi, CAD should cede some ground. In the weekly chart we can see that price action bullish divergence relative to stochastics. With higher highs relative to lower BB and a buy signal to shore NZD bulls, a buy stop in lower time frame should be a way forward.
To do that, we shall enter our trade in the daily chart. The main resistance trend line connects July 28 and October 16 highs. For bullish scenario, I will set a buy stop at 0.893 which is November 1 highs. Notice that there is a double bottom at 0.88 and should our trigger at 0.893 broken then price action shows that the next stop of the resulting W-Formation will be at 0.94 to the upside. That will be our ideal bull take profit.
Trading will be as follows:
Buy Stop: 0.893
Stop Loss: 0.88
Take Profit: 0.92-0.94 range
Have a good trading day.
Let me know what your think.
More at: forex.today/
Technically, I expect the NZD to chart its way up. Keeping it simple, momentum indicators show that prices are overextended to the downside and after a 10% gain against the Kiwi, CAD should cede some ground. In the weekly chart we can see that price action bullish divergence relative to stochastics. With higher highs relative to lower BB and a buy signal to shore NZD bulls, a buy stop in lower time frame should be a way forward.
To do that, we shall enter our trade in the daily chart. The main resistance trend line connects July 28 and October 16 highs. For bullish scenario, I will set a buy stop at 0.893 which is November 1 highs. Notice that there is a double bottom at 0.88 and should our trigger at 0.893 broken then price action shows that the next stop of the resulting W-Formation will be at 0.94 to the upside. That will be our ideal bull take profit.
Trading will be as follows:
Buy Stop: 0.893
Stop Loss: 0.88
Take Profit: 0.92-0.94 range
Have a good trading day.
Let me know what your think.
More at: forex.today/