NZDUSD Trading Setup

Dear traders,

The trading setup from last time is playing with the stop at the moment. It looks like the price might be ready to test the next support level at 15.50. That is why I am more cautious with it. The price action is not really giving me a better idea and this makes me think about the major trend. Since we are in a bearish correction, maybe we should be more patient and wait until (if) the 15.50 is reached.

NZDUSD Trading Setup

Today’s trading setup is coming from the NZDUSD pair. There are a couple of fundamental factors to note before I proceed to the technical analysis bit.

  1. Draghi speaks at 13:00 GMT (indirect effect and building up a position before RBZ)
  2. Today is the day of the RBZ Rate Statement

Those two should make you reconsider where to place your stop-losses. I personally am considering a slightly wider SL. But before that, what do I see today:

NZDUSD Trading Setup

Here is the 4H chart of the NZDUSD. As I have pointed out with the red circles, there are price action confirmation patterns. I am looking at all of the pin bars and bullish engulfing candlesticks around the support level. This is a confirmation that the support level is strong enough to hold so many attempts to break lower. I will be looking to go long at around 0.6885 or slightly higher depending on price action. My stop loss would be placed just under 0.6825. My first target is the resistance area at 0.7050.

Happy Trading,

Colibri Trader

p.s.

If you have not checked my latest trading psychology article, you can do so HERE

If you are interested to know how I trade in details, you can check it out HERE

If you have any questions- hit me up at: [email protected]