NZDUSD broke out of a descending triangle pattern and has now retested the trendline with a lowtest. Furthermore it has also retested and rejected the 0.5 and the 0.618 fibonacci retracement level. Icing on the cake is the retest of the 50 EMA. With 6 confluence factors this trade is a grade "A" trade in my trading plan, which has a strike rate of roughly 66%. The target is set below the next horizontal resistance level, whereas the stop is put below recent price action.
Trade active:
We had a strong bullish day which signals to me that the setup was seen by a lot of eyes. Now comes the patience into play, the stop will stay where it is until further notice.
Trade active:
Another strong bullish day. Our trade idea was valid and alot of momentum was an our side. I will keep an eye on possible bearish price action, until then I'll let the price action develope itself.
Trade closed manually:
I just closed the trade as I'm going to enter a position on GBPNZD (as I posted). Because I dont want to expose myself to correlating to heavily, I closed this position for a gain of 1.94%.