NZDUSD Trading Setup

I have been looking at NZDUSD since last week. As you can see HERE, my trading idea from last week was based on NZDUSD, too. The RBZ news announcement might have taken you out of this position (I intended to place my SL below 0.6825). Or, you might have placed your SL below 0.6800, in which case you would not have been stopped out. I was monitoring the price action after RBZ and the support level was still holding well. The price was slightly below it, but still not broken firmly, which was an initial indication for me that a bottom might have been reached. You should not rush though, because you need a price action confirmation before you can act with more certainty.

NZDUSD Trading Setup

Now I am looking at a possible new NZDUSD setup. The price did not go lower and has been on the rise since then. As you can see from the screenshot, it looks like it might be bottoming out. The daily candle from Friday is a long-legged doji (showing indecision). Today’s candle is most likely going to be a bullish candle. One way or another, I will be looking for a small retracement (after daily close) if I am going to enter in another long trade. A good level for me would be 0.6865. I would be looking to place my SL just below 0.6815. My first target would be the level of 0.7050. As you can see from the screenshot above, the next resistance level (take profit zone) is the level of 0.7350.

Happy Trading,

Colibri Trader

p.s.

If you have not checked my recent article on the 3 Less Known Indicators, please do so

If you have some ideas or suggestions, please do write in the comments section below or send them to: [email protected]