NZDUSD have recently broken out of the daily rising trendline i have identified. This give us an indication of entering a short position on the pair. On the lower time frame (4H), we see a lower high being formed after a series of higher highs and higher lows. Using the 1H timeframe to base my entry decision, i believe that if NZDUSD breaks below the identified support, then we will have ourselves a good short opportunity on the pair. Do trade with caution as i believe many traders have taken a large drawdown due to the previous two fake breakouts on the 1H timeframe.
I have set an alert at 0.5934. Once the pair has reached that level, then i will identify a short entry on the pullback. Doing so will increase our risk-reward on the trade. Finally, i think this is a higher probability trade because we will be trading along with the long-term trend of the pair. I have identified a TP2 this time because i believe if the pair wants to continue its downward momentum, then the pair has to make a lower low. On TP1 i have placed my TP at the previous swing low (as seen on the 4H timeframe)