Kiwi Kisses Resistance and Threatens Sell Breakout
By: Jeremy Wagner, Lead Trading Instructor, DailyFX EDU
The NZDUSD recently broke through an important 200 Day Simple Moving Average near .7950. Additionally, we have a series of lower highs and lower lows on the daily chart. The trend is shifting to the downside as prices are testing breakout points for a sell near .7635.
We will look for an entry order to sell 1 pip below the low on September 26, 2011 at .7635.
Scroll down to a smaller time frame like a 2 hr chart to establish your stop loss level. Find a swing high and place your stop just above the swing high. In this case, our entry order would be to sell .7635 with a stop loss near .7835.
Manually trail your stop lower if the price moves into your favor.
Follow me on twitter at @JWagnerFXTrader
Jeremy Wagner contributes to the Instructor Trading Tips articles.
To receive more timely notifications on his reports, email email@example.com to be added to my distribution list.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.