NZDUSD - Support and resistance - multipivot line - short
The New Zealand dollar has busted its large horizontal support and resistance multi pivot line (MPL). Price has been in a strong and steady downtrend since July. Assuming price stays below the MPL, which is likely at this point since we've tested the back side of it several times, the next target is the confluence of old lows and the lower median line parallel of the fork.
This sets up a nice risk to reward trade. For less than 75 pips, you can get a shot at at nearly 300, or well over a 3:1 ratio. I would look to enter on a retrace back up to the .8375 area, which would be another touch of the median line. Price has been dancing on both sides of the median for a month now, so another test of it is reasonable to expect.
As a bonus, there are some decently large Australian and Chinese news items on the horizon as well. These could provide not only our entry but a catalyst for the downside as well.
Special thanks to TimingisKey whose post got me drawing on this chart!
For more ideas and trading education, please visit www.iTradingForex.com
This sets up a nice risk to reward trade. For less than 75 pips, you can get a shot at at nearly 300, or well over a 3:1 ratio. I would look to enter on a retrace back up to the .8375 area, which would be another touch of the median line. Price has been dancing on both sides of the median for a month now, so another test of it is reasonable to expect.
As a bonus, there are some decently large Australian and Chinese news items on the horizon as well. These could provide not only our entry but a catalyst for the downside as well.
Special thanks to TimingisKey whose post got me drawing on this chart!
For more ideas and trading education, please visit www.iTradingForex.com
