Trade Update: NZD/USD un-hit; targets pointing the way to profits
Welcome back traders! The next opportunity I wanted to look at is the NZD/USD. The market has again formed a low and high on the 2-hour chart that seems to be long lasting till this point. I believe we have enough time left in the month left that the un-hit monthly target is really pulling the market the way we want it. In addition, we have missed a weekly target from last week, giving us some added confirmation the range is holding.
Effectively, this market has struck the D-extension for this swing, (screams pull back) and hit the yearly price target for the year of 2017 (again, screams pull back). I like these smaller risk-versus-reward trades because we are going to wait for the market to pull back and create a better buy-low price at roughly .68915 before we enter long. We will then be risking 40 pips and going after 200 pips in the missed weekly target from last week. If we are right in this analysis, and I am fully confident we very well could be, this market will pull back all the way to the missed monthly target for March. That would be a 440 pips reward. Not bad for the risk we are incurring!
Again, this is the way I find my opportunities, they are generally mostly technical at first, but usually have a fundamental factor driving them. To get this trade to POP all we need is a bit of dollar weakness, or a strong milk report from New Zealand, or possibly a dash of interest rate news and we have a HUGE trade potentially!