Pick of the Day: NZD/USD

Today’s chart is on NZDUSD once again! It’s still in a down trend with a slight retracement, so let’s see if we can get in and grab a few pips!

Tomorrow NZD will be releasing its QoQ GDP report at 5:45 pm EST. I expect range trading until the report, but often times traders will get into position to take advantage of a surprise or big move. This may push the pair into a possible trade scenario or two for us. Let’s see what we have.

Both trade ideas are short plays to keep with the trend. First if the pair moves down from this point I am looking for to sell NZDUSD when a candle closes below the 50 sma and the pivot point line. Appoximately 0.6237. My stop will be 20 pips from my entry. I’ll target 10 pips first, move my stop to break even and close half of my position. Second target is the S1 line at 0.6197.

The second idea is if the pair slowly moves up I’m looking for resistance at the .6300. So, I’m setting my short entry at .6300 with a 20 pip stop at .6320. I’ll target 10 pips first, move my stop to break even and close half of my position. My second profit target is the pivot line at .6237.

If no trade has triggered by 5:00 pm EST remove all entry orders.