Good morning Forex Kings,
Crazy night last night if you were watching crude oil prices. I will cover Crude Oil in another set up, however the plan remains the same.
Today we are looking at the NZDUSD. We are fast approaching the US earnings season and there is some large forecasts on the downside. This morning Virgin Australia entered voluntary administration.
If we see another down swing on global equities, commodity related currencies may also be negatively impacted. We are already short on the AUD, therefore we are turning our attention to the NZD.
NZDUSD – 4 Hour Charts
There has been a break out from a key trend line which we traded last week. There has also been a breakout from a potential bear flag this morning. The market failed to print a higher high on the trend suggesting a bearish momentum.
Trade SETUP: SELL – Market Order (Current price 0.6043). Stop loss set at 0.6136, take profit 0.5850.
Stop loss: 93 pips
Take Profit: 193 pips