Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
NZD/USD Inside Bar Breakout

NZD/USD Inside Bar Breakout

Walker England, Forex Trading Instructor

Market Condition: NZD/USD Pending Daily Breakout

Target 1: 1X Range130 Pips

Target 2: 2x Range260 Pips

Invalidation: Continued Consolidation

NZD/USD Daily Chart

(Created using TradingView Charts)

The NZD/USD has been consolidating over the last two days, after declining as much as 130 pips on Tuesday. Currently, prices continue to trade inside of Tuesdays high and low, creating a series of inside bars. Traders may begin looking for a breakout, may use Tuesdays high and low as values of support and resistance. Bearish breakouts may be planned if prices break support, which is found using the daily low at a price of .7234. Alternatively, bullish breakouts may begin above Tuesday’s high of .7364. It should be noted that this trading range, measuring 130 pips, may be used to find potential targets for a breakout. A 1x extension of this range places bullish targets near .7494, and bearish targets near .7104.

In the event of a false breakout, traders may consider using half the distance of the range, 65 pips, to create an initial 1:2 Risk/Reward ratio. Traders should also remember that it is possible that price action to continue to consolidate. In this scenario, traders may elect to leave pending entry orders, or trade the ensuing range.

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.