Market Condition: NZD/USD Daily Breakout
Target 1:.7062 (2XATR)
Target 2:.7250 (4X ATR)
Invalidation: 1X ATR Reversal to .6686
(Created using Marketscope 2.0 Charts)
The NZD/USD is currently retracing, after posting a new yearly high last week at a price of .6874. As the pair declines, traders looking to join the trend may plan for the pair’s next major breakout. To do so, an entry order may be considered one pip above the high at .6875. It should be noted, in the event of a trend reversal, and prices drop back below the daily 200 period SMA, traders may elect to delete any pending buy orders.
If prices do breakout to a new high, traders may use ATR to evaluate potential targets. Today’s daily ATR value for the NZD/USD reads at 94 pips. This omeans using a 2X ATR target, traders may begin looking for initial price targets near .7062. Extend targets found using 4X ATR may also be found near .7250. Stop orders may also be positioned using ATR. A 1X ATR stop for a NZD/USD breakout would be found at .6686
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