Sunday Thoughts on NZDUSD
Sunday Thoughts on NZDUSD
by: Colibri Trader
Hello traders,
Last week gave us a couple of good setups. The EURUSD trading idea did reveal according to the plan. I was able to add a second position according to my trading strategy. Ask me if you are interested to learn more about it!
Sunday Thoughts on NZDUSD
Today is Sunday and as usual, I am skimming through the charts in order to look for a good trading setup. It does not mean that I will necessary act on it, but will be closely following its action. Under my attention came the NZDUSD currency pair. As you can see from the Daily chart, price has found a support level. If I zoom in and go down to the 4 hour chart, that’s what you will see:
From the screenshot above you can see that the price has bounced off the minor support at 0.6980. I will be ideally looking for a rejection candle in the 4H chart. The opening is very important, so we need to wait and see the price action. The daily candle is similar to an inside bar (although not an exact inside bar) and has formed on a minor support, as well. I will be looking for a suitable entry, but it seems like a stop loss could be placed just under 0.6940. My first price target would be around 0.7100. My secondary price target would be at around 0.7150. A potential third price target is at the level of 0.7350.
Happy Sunday,
Colibri Trader
p.s.
If you have not done so, please check out my last article on the ATR Indicator– the one helping traders place correct stop-losses.
Hi Colibri,
I see from a daily chart for the NZD/USD it was making lower highs lower lows but then the move to Feb 7 2017 took out last swing high then down to a higher low on Mar 12th 2017 The fact that it is now making a higher low signifies supportive behaviour. If .6968 (Mar 16th) remains unbreached then perhaps your will be onto a winner.
I wanted to know if you took these swing points as I described into account on deciding whether to look for longs or not.
This would be looking at the chart from a 10,000 ft view as they say
Essentially price is in nomans land atm.
But I do see a long trade as a low risk trade from here.
I hope I’m not coming across abrasive in this post I just want to learn more about how you think but making open observations.
Apologies if it come across this way.
Thank you for your trade ideas
Hi Dan,
Great observations as usual. I am currently looking at NZDUSD and waiting for a price action confirmation as described in my article. So far, the price has opened lower and keeps on going down, which is not bad- it actually can give us a better entry. The problem is that so far I am not seeing a confirmation from the price for a long entry. I will be looking at around 0.6970 for a price confirmation, since we are now at no man’s land as you said it. Keep on learning and being persistent! You comments are very valuable and that’s the best way to learn- through communication (and of course through practice). Keep it up!
Hi colibritrader,
NZD/USD
On watch, currently at a support level (.6867) daily candle is very bearish, I’m waiting for a bullish candle to form from current price and down to next support level which is 166 pips away.
So looking for a turning point within the next 166 pips.
Regards
Hi Dan,
I am really curious to see if that level will hold. I will be looking for a price action confirmation of it. For now it looks like it might break through this support level, but without price action confirmation, I am like a blind person. Patience pays back, so I am waiting to see a confirmation.