Market Condition: NZD/USD Pending Daily Breakout
Target 1: 2X ATR .7498
Target 2: 4x ATR .7672
Invalidation: Failed Breakout / New 20 Day Low
(Created using Marketscope 2.0 Charts)
The NZD/USD has bounced off of support found near .7000. If the pair continues to trade higher next week, traders may look for a breakout above the 20 day high at .7324. Current daily ATR for the NZD/USD reads at 87 pips. Traders looking for a 2X ATR move may look for initial targets near .7498. Alternatively a 4X ATR extension may be found near .7672. Traders may also use a 1X ATR to manage risk. If stops are placed at .7237, this would create a positive risk reward ratio of 1:2 or better.
In the event that price fails to breakout to a new 20 day high, traders may delete any pending orders. A decline in price below .6951 would place the NZD/USD at a new 20 day low. In this scenario, traders may opt to sell the market with fresh downward momentum.
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