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.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
NZD/USD Pending Bearish Breakout

NZD/USD Pending Bearish Breakout

2017-04-25 18:09:00
Walker England, Forex Trading Instructor
Share:

Market Condition: NZD/USD Pending Breakout

Target 1:______2X ATR at .6792

Target 2:______4X ATR at .6699

NZD/USD, Daily Chart with Range

NZD/USD Pending Bearish Breakout

(Created Using IG Charts)

The NZD/USD is now trending towards new yearly lows, allowing traders to plan for a fresh bearish breakout. Traders may plan to enter into the market below the January 3rd low at .6884. It should be noted that daily ATR (average true range) for the NZD/USD reads at 46 pips. Upon a breakout, traders may elect to use a 2X ATR extension ATR to find initial profit targets near .6792. Further extensions open up a potential 4X ATR profit target near.6699.

Traders may also consider using ATR to manage risk. A 46 pip stop loss at .6930 would set up an initial 1:2 risk/reward ratio. In the event that the NZD/USD fails to breakout lower, traders may opt to delete any pending entry orders on the creation of a new monthly high above .7057.

--- Written by Walker, Analyst for DailyFX.com

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

See Walker’s most recent articles at hisBio Page.

Contact and Follow Walker on Twitter @WEnglandFX.

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

DISCLOSURES

News & Analysis at your fingertips.