Trade Update: NZD/USD 2nd Look at additional potential profits
Hey traders! Last time I posted, I was talking about the NZD/USD on the 2-hour chart. We had a nice “negative space trade” shape up, but we needed a reason to get in and we were looking for a better buy-low price BEFORE we entered. The market did end up triggering our pending order and we entered the market on the right side of our counter trendline using support and resistance, as well as our un-hit monthly and weekly targets act as our exit guide. We got an interest rate decision that gave our technical and fundamental traders out there a reason to get in buying this market and we saw a nice push in the direction of our exit.
Now, the above screen shot was from last night after the announcement that our basis interest from the central Fed bank would be going up a quarter point. I did not think at the time that the market would continue to push so aggressively and would pullback before going for our weekly target exit in green. The market did pull back and form a new sub-swing and it so happens that the .618 of the sub-swing that was just formed lines up with support here. I like that for a range of pullback over the next day. I would anticipate the next extension later tonight during the Asian session
I would anticipate the market forming a wedge here with the next opportunity to get in buying coming after the right side of the wedge gets broken. I may intend to lot in again at that time, going to our target to get some more value out of the move. But again, I see my most immediate exit as the weekly target highlighted in the green line, just north of the market here.
At this time, I’m up about 90 pips on this trade! Again guys, if you check the last post in the string we risked 40 -60 pips to get into this trade. We might see this run all the way to the monthly target here by the end of the month. This was a great potential trade a few days ago and took about 10-minutes setting up a pending order paid out for the time spent. This is why forex traders leverage time (valuable time) for money. We could close out with a profit but the news and technicals are in our favor here. I do not plan on moving my stop up, as again we are for now anticipating some pull back in the sub swing but as long as I know that I do not get worried.
Hope this one helped you guys in time and that you read this post in good health!