Market Condition: NZD/USD Pending Breakout
Target 1:Bullish .7319 Bearish .7100
Target 2:Bullish .7392 Bearish .7027
NZD/USD, Daily Chart & Inside Bar
Thursday’s high stands at .7246, and traders may plan for bullish breakouts above this point. Alternatively, bearish breakouts may be identified under Thursday’s at .7173. The identified range, highlighted above, measures 73 pips. Initial bullish or bearish targets may be considered by using a 1X extension of this value. Half the distance of the range may be considered to manage risk in order to create an initial 1:2 risk reward ratio.
If the NZD/USD continues to consolidate and fails to breakout, traders may opt to trade the interior of the developing range or select another currency pair for a breakout opportunity.
--- Written by Walker, Analyst for DailyFX.com
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