After a constructed drop in september and early october, NZDUSD has made a bounce at a great support point :
- The ascending support that shows the pace of the mid term trend
- The 150 days moving average, which constitutes a dynamic support since March of this year.
Since that bounce, the short term construction is also .
The current drop makes a great opportunity to enter long on this pair, with the following simple strategy :
- Open long under 0.7200
- Stop @ 0.7085 (below the previous bottom)
- Target @ 0.7380 (just bellow the previous top to make sure you get executed if the scenario is favorable)
Reward/Risk ratio = 1.56
This scenario is short term ; if the stop had to be reached then we would seek to enter later, for example near the major support.