Market Condition: NZD/USD Pending Breakout
Target 1: .7627
Target 2: .7879
NZD/USD, Daily Chart with Resistance
(Created Using IG Charts)
The NZD/USD is trending higher for 2017, and is just off of its yearly high at .7375. If prices continue to rise after this afternoon’s RBNZ rate decision, traders may look for bullish breakouts above this point. Traders may consider managing risk below last Friday’s swing low at .7249. With 126 pips of potential risk, traders may consider a 252 pip profit target towards .7627. This would create an initial 1:2 Risk/Reward ratio for a bullish breakout.
In the event that prices fail to breakout higher, traders may elect to simply delete any pending long entry orders. If prices do break below .7249, this would suggest a change in momentum for the NZD/USD. In this bearish scenario, traders may consider sell based strategies on a change in the markets direction.
--- Written by Walker, Analyst for DailyFX.com
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