Pick of the Day: NZD/USD
Here's my pick of the day. Let's take a look at the hourly chart for NZDUSD:
As you can see, with NZDUSD having trouble breaking above the 100 SMA to the upside and the pair in a downtrend, we're going to look for a short trade.
We are looking to go short at 0.6813 with an initial profit target of 10 pips below at 0.6803. Our stop is going to be approximately 10 pips above the 100 SMA.
I wouldn't set it more than 30 pips above your entry. Our aggressive target is at the S1 line; 0.6777. Now, if the pair breaks above the 200 SMA, look for a long trade above the R1 line.
On a side economic note, RBNZ Official Cash Rate is coming out at 3:00 pm EST with a consensus at 7.25%. I would take the trade off a little bit before this time to avoid possible volatility if the number is a surprise.
