NZDUSD has been trading in an ascending channel and is approaching channel resistance. Stochastic is already reading overbought conditions, signalling a downward move. Bearish oscillator divergence (higher high, lower high) makes me think that the pair will change direction soon and work its way back down to support at .7060. Fundamentally, USD is very weak after the NFP report on Friday, so there is a chance NZD will simply break channel resistance and continue going higher. I may use a smaller position size on this trade.
I will enter short on a bearish engulfing candle at the break of .7185 with a stop loss at .7230 and a profit target of .7140 for a 1:1 trade.
I will enter short on a bearish engulfing candle at the break of .7185 with a stop loss at .7230 and a profit target of .7140 for a 1:1 trade.