EUR/NZD Pending Breakout
Market Condition: EUR/NZD Pending Breakout
Bullish Target: ______ 1.5742
The EUR/NZD is trading in a 278 pip range as seen in the daily chart above. Resistance for the range is found at the March 27th high at a price of 1.5464. Alternatively support is found at the March 31st low of 1.5186. Traders may plan for a breakout in the EUR/NZD by setting entry orders to buy the market above resistance, and orders to sell the market below support. This way traders will be prepared for a breakout in either direction when the consolidating range concludes.
Upon a breakout, traders may consider using a 1X extension of the 278 pip range to find both bullish and bearish profit targets. This places initial bullish targets at 1.5742, and bearish targets at 1.4908. Traders may also consider managing risk at the center of the identified range. Using this methodology, breakout traders may create a 1:2 risk/reward ratio.
--- Written by Walker, Analyst for DailyFX.com
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