Live Trades in Play – USD/NZD

Filed under: Live Trades |

I currently have two live trades in play. One is on the GBP/USD pair, which I have discussed over the past couple of days and it still has not come to fruition, and is currently just about in profit. The other trade is one that I took last night on the USD/NZD pair, which is the pair for the United States dollar and the New Zealand dollar.

 

Figure 1.

To begin with, take a look at Figure 1. This is the daily chart for the USD/NZD currency pair, and it is the only timeframe that we will need to look at for this particular setup because all of the information that we need is contained in this chart. As you can see, price is quite bearish at the moment on this pair, with the 8-day exponential moving average crossed well below the 21-day exponential moving average, and with the two moving average actually diverging even wider apart – signalling the momentum of this bearish move. What you can also see is that there is a level of support/resistance that price has just broken through, and a bearish pin bar has formed that penetrated this level of support/resistance.

 

It was at the close of this pin bar that I put an order in to go short at a 50% retracement of the pin bar, with a stop loss placed just a few pips above the high of the pin bar, and a split target of one and two times my risk. That is a total risk of 1% of my bank, with 70% of these lots having a risk-reward of 1:1, and 30% of these lots having a risk-reward of 1:2. We will see how this trade goes and I will report back on Monday. Until then, have a great weekend.

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