News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
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
More View more
Real Time News
  • ECB's Kazaks - The 2% price target will not be met in the medium term - Inflation outlook likely to be revised higher
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/fs5IRP7MJy
  • ECB's De Cos says conclusion of FT report is incompatible with ECB guidance $EUR
  • 💶 Inflation Rate YoY Final (AUG) Actual: 3% Expected: 3% Previous: 2.2% https://www.dailyfx.com/economic-calendar#2021-09-17
  • 💶 Inflation Rate MoM Final (AUG) Actual: 0.4% Expected: 0.4% Previous: -0.1% https://www.dailyfx.com/economic-calendar#2021-09-17
  • 💶 Core Inflation Rate YoY Final (AUG) Actual: 1.6% Expected: 1.6% Previous: 0.7% https://www.dailyfx.com/economic-calendar#2021-09-17
  • Heads Up:💶 Inflation Rate YoY Final (AUG) due at 09:00 GMT (15min) Expected: 3% Previous: 2.2% https://www.dailyfx.com/economic-calendar#2021-09-17
  • Heads Up:💶 Inflation Rate MoM Final (AUG) due at 09:00 GMT (15min) Expected: 0.4% Previous: -0.1% https://www.dailyfx.com/economic-calendar#2021-09-17
  • Heads Up:💶 Core Inflation Rate YoY Final (AUG) due at 09:00 GMT (15min) Expected: 1.6% Previous: 0.7% https://www.dailyfx.com/economic-calendar#2021-09-17
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/zOjbAQzaP9
Scalping the Kiwi Trend

Scalping the Kiwi Trend

Walker England, Forex Trading Instructor

The NZDUSD has been one of the Forex markets strongest trends, moving as much as 529 pips since the beginning of September. As prices have pushed towards higher highs, scalpers will want to validate short term momentum prior to entering in with the standing trend. Today we will assess how we can spot this momentum and how it is useful for the short term Forex trader.

  • NZDUSD Trend
  • Finding Momentum
  • Market Validation

Learn Forex – NZDUSD 4Hour Trend

Scalping_The_Kiwi_Trend_body_Picture_2.png, Scalping the Kiwi Trend

(Created using FXCM’s Marketscope 2.0 charts)

NZDUSD Building Blocks

Due to counter trend swings that can occur to news and other events, it is also important to determine the direction of short term market momentum. One technique that can be useful to scalpers is to divide the previous trading week into halves. This will create two congruent trading blocks to help determine if this week’s price action is pointed in the direction of the primary trend trend. If both points of analysis line up, traders may then look for future scalping opportunities.

Below we have divided our previous trading week price action on the NZDUSD into segments labeled Block 1 and 2. Block 1 begins on Wednesday the 11th and runs through Sunday the 15th. Block 1 shows the NZDUSD breaking to a new high at .8168. Block 2 shows a continuation of this upward momentum as price surged to higher highs at the beginning of this week’s trading. To symbolize the strength of both blocks they can be seen labeled in blue below. Knowing that market momentum is currently continuing in the direction of the primary trend, Forex scalpers can continue to look for entries as the market presses to fresh highs.

Learn Forex – NZDUSD Building Blocks

Scalping_The_Kiwi_Trend_body_Picture_1.png, Scalping the Kiwi Trend

(Created using FXCM’s Marketscope 2.0 charts)

Even though both blocks in our momentum analysis have shown previous highs created, current price is still below our previous high at .8247. Scalpers will want to see price break above this value, if the current trend is to continue.

In the event that the price breaks below the previous low of .8154, this would at least temporarily invalidate the NZDUSD trend. At that point traders should potentially look for a new pair to trade or wait for a new breakout towards higher highs.

---Written by Walker England, Trading Instructor

To contact Walker, emailinstructor@dailyfx.com. Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list,CLICK HEREand enter in your email information

New to the FX market? Save hours in figuring out what FOREX trading is all about.

Take this free 20 minute “New to FX” course presented by DailyFX Education. In the course, you will learn about the basics of a FOREX transaction, what leverage is, and how to determine an appropriate amount of leverage for your trading.

Register HERE to start your FOREX learning now!

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

DISCLOSURES