NZDUSD Price Action Analysis – 23rd Feb 2018

NZDUSD has been still in a range on the H4 chart. Today’s price action suggests that the pair might take a Bearish ride though. The pair produced two H4 Bearish candles consecutively. Moreover, it made an important breakout at the yesterday’s lower low. If the current H4 candle is held at the breakout level, then selling the pair would get us some green pips with a good risk and reward ratio. Let us have a look at the H4 NZDUSD chart.

Have a look at the last two H4 Bearish candles. One of them made a breakout at the level of 0.73085, which was yesterday’s lower low. If the current H4 candle is held at the breakout level, then the sellers would wait for an H1 Bearish Engulfing Candle to take a short entry. Let us have a look at the summary of the trade…

• Sell Limit Order: 0.73085
• Stop Loss: 0.73430
• Take Profit: 0.72530
• Validity: 72 hours
• Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable

None of the currency pair has any high impact news event today. This means if the pair produces the signal according to this setup, then technical traders would love to jump into this pair and take the entry. Only one thing we might have to consider though. This is the last day of the week. Thus, to wrap up the week, we might have to come out with the profit if the target is not hit before the market closes. However, most probably the target would get hit before today’s close.