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I know I had just cancelled my buy limit orders on this pair recently when it appeared that I missed the pullback, but price just dipped right back to the support zone so I hopped in!

Long AUD/NZD Idea

In my initial trade idea, I wanted to go long at the 61.8% Fibonacci retracement level but the pair looked ready to resume the climb and even went on to make new highs. However, the Kiwi enjoyed a pop higher upon seeing opinion poll results earlier in the week, giving me another shot to catch the uptrend.

AUD/NZD 4-hour Forex Chart
AUD/NZD 4-hour Forex Chart

This time, the trend line support lines up with the 38.2% Fib level but is still around the 1.1000 major psychological level. Price seems to be showing a return in bullish momentum after testing this floor, so I jumped right back in around my original entry level of 1.1025.

In addition, I’m seeing more confirmation from stochastic as it formed a bullish divergence. As you can see, price made lower lows since September 5 while the oscillator recently made higher lows then.

As for my stops and targets, I kept my original ones as well at 1.0875 and 1.1175, respectively. I’m also putting 0.5% of my account on the line for a potential 1:1 play.

In terms of event risks, I’m gonna keep close tabs on the Australian jobs report which might show a slower pace of hiring growth at 17.5K versus the earlier 27.9K gain. New Zealand’s economic event coast is clear for the next few days, but traders could refrain from piling on long Kiwi positions ahead of the top-tier data and the Parliamentary elections next week.

Cheers,

Happy

See also: Q2 2017 Trading Performance Review

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