( NZD/USD Trade Setup): Following last weeks move of 170 pips from the MKL , I’m looking for two possible situations, both of which I have a bias. An important technical factor with this setup to keep in mind is the previous low on Jan. 22nd. Until this is broken or retested, we remain with the possibility of a pullback up.
For those that have been watching UJ this last week during it’s consolidation, NU should look familiar to you. Our plan is to continue shorting to last weeks target of 0.67 following a breakout of the bottom (orange zone) for around +35 pips to the downside.
The other scenario, is a break to the upside (blue zone), where I will be looking to short NU back down at the 61.8% fib level of 0.68278. This would be a profit of approx. +140 pips to the downside.