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Free Profitable Forex NewsletterÂ
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Hey! This is Philip with this week's trade idea of the Free Profitable Forex Newsletter!
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The kiwi dollar continues to roar across the board, and that is now coming into focus again versus the US dollar as the NZDUSD pair is breaking the recent consolidative formation to the upside today.
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Namely, NZDUSD reached a peak in early January and has pretty much moved sideways since mid-January until the breakout today. Given the stellar uptrend that preceded this consolidation, it doesn’t take much to conclude that NZDUSD bulls are ready to take the pair further higher. The technical picture suggests there is more upside potential toward the 0.75 area, about 200 pips higher from current levels.
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The breakout above the consolidation came on solid momentum today. The pair almost touched the 0.73 level before retracing gradually now. This seems like a good opportunity to go long on some bullish technical pattern or signal. Look at the hourly and lower timeframes for that.
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They've been called the "most boring stocks on earth." But I wouldn't trade them for the world. These stocks payout whether the market moves up, down, or sideways (they are mandated by law to make a profit). Today's market roller coaster ride is proof that these "boring" stocks are (or should be) a critical part of your investment strategy.
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Entry:Â
- Look to enter around current levels (0.7290), or lower if possible (e.g. if the market gives us a retracement back to the breakout point at 0.7050).Â
Stop:Â
- The 0.7250 support should hold. It can be used as the basis for setting the stop loss level. However, that doesn’t mean that the price can’t (or won’t) pierce the support and touch lower levels, even if the support holds. So, as usual, it makes sense to put the stop somewhat lower than this support zone.
- The next key technical zone lower is 0.7200. Placing the stop slightly below it should allow better breathing room for the trade. Moreover, this level is adjoined by the rising support trendline, therefore, being a higher probability stop loss level (meaning if it fails to hold, the trade would most likely be failed at that point too).
Targets:
- The 0.7450 - 0.7500 area
- As noted above, there is potential for NZDUSD to reach 0.75. However, the resistance trendline of the ascending channel is currently standing around 0.7450, meaning NZDUSD could encounter resistance here before it reaches 0.75.
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Trade signals from the past week
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- February 12 -Â Long USDCHF from 0.8935 (in progress)
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TOTAL: 0 pips profit in the past week
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TOTAL: +3625Â pips profit since October 1, 2018
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If you have any questions or feedback, don't hesitate to reply to this email.
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Thank you!
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High Risk Warning: Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.
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Any opinions, news, research, predictions, analyses, prices or other information contained in this newsletter is provided as general market commentary and does not constitute investment advice. FX Trading Revolution will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
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