Hello Trading Signal Followers
I have been caught a bit unprepared with the last trading signal I did write about. I was looking to go long DAX a few days ago on the bullish engulfing pattern. Unfortunately, the price couldn’t break through the resistance area. That is why a lot of short-sellers rushed in and started adding short positions to the already gone buyers’ closed positions. This, coupled with strong fundamentals brought DAX over 600 points down. I did not take any short positions, as well. Therefore, I got stopped (130 points loss) and did not take advantage of the sharp fall.
In the meantime, I am looking at the NZD/USD trading signal. My attention was brought to this pair from one of my students, who took my trading course. He made a great point discovering this pair. Today’s trading signal is a bullish engulfing candle. It has formed near the support level at 0.6500. The only downside of this trading signal is that it is against the trend. As such, it is a more risky trade, but for the more aggressive traders amongst you, the NZD/USD trading signal might be a timely entry…and who knows, maybe a bottom. So, what I will consider doing is going long after a small retracement to around 0.6600. The stop should be placed just under 0.6460. The first price target is the level of 0.6800.