NZDUSD Free Forex Trading Signals – 22nd Feb 2017

NZDUSD had a massive bearish move and then had a consolidation on the H4 chart. The last corrective wave has been obeying a down Trend line as well. If we get a breakout at the Trend line, then buying NZDUSD might get us some green pips. Let us have a look at the NZDUSD H4 chart

As we can see, 71.320 has been a strong level of support. The price bounced from that level in the last week and went up to 0.72420. Then, the corrective wave came down up to the support level and had another bounce. Take a close look at the down trending line, which has been obeyed by the price number of times. If we get a breakout here, then as far as this chart is concerned, buying is the best option.

Let us have a look at the summary of the trade

• Buy Stop Order:   Ideally at the breakout of trendline (currently it’s at 0.71600)
• Stop Loss Level: 0.71320
• Take Profit Target: 0.72420

Trend line breakout alone is not enough to take an entry. The breakout needs to be held and confirmed for one more candle. Whereas, horizontal support resistance breakout is considered a valid breakout as long as the price is held. It means as long as the closing price of the breakout candle breaches the level; an entry can be taken in most of the cases of horizontal support/resistance breakout.

Thus, Trend line breakout can be tricky and it might deceive us from time to time. Traders must be careful about taking entries in case of Trend line breakout. In fact, they just need to be more patient at the time of taking entries when there is a Trend line breakout.

Comment below if you have questions on this trade and please let us know if you made money if this trade signal. Good luck!

You can also take a look at our previous (and most likely profitable) Free Forex Trading Signals Here.

We hope that you enjoy our Free Forex Trading Signal today:  XAUUSD Free Forex Trading Signals – 21st Feb 2017