NZDUSD Price Action Analysis – 6th Mar 2018
NZDUSD has been in a range on the H4 chart. However, the Daily chart shows that the pair is Bearish. Today’s first two H4 candles have been Bullish. It might be the time for the pair to make some downward correction on smaller time frames. If the pair produces an H4 Bearish reversal candle while making the correction and we get an H1 breakout towards the downside, then selling the pair would get us some green pips. Let us have a look at the H4 NZDUSD chart.
As we see here that the level of 0.72450 shows some resistance here. If it continues to do so and produces an H4 Bearish Reversal candle, then we should wait for an H1 breakout at the level of 0.72200 area to take a short entry. Let us have a look at the summary of the trade…
- Sell Stop Order: 0.72200
- Stop Loss: 0.72450
- Take Profit: 0.71850
- 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 has any high impact news event today. This would attract the technical traders to keep their eyes on the pair to take the entry. I would love to see the current H4 candle comes out as an H4 Bearish Engulfing Candle. If the H1 breakout happens after an H4 Bearish Engulfing candle, then we should reach the target in no time. If we get an Inside bar or a Doji candle, then we might have to wait a bit longer to achieve the target.
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