Calling All Traders: Look For This 190+ Pip Move
Wed 31st May 2023 : Daily Currency Strength Analysis
Today we’re looking at Trading Setups in:
- NZDUSD (Primary Focus Pair)
- AUDUSD (Covered In Video)
- GBPAUD (Covered In Video)
Primary Focus Pair: Trade Plan & Details
| NZDUSD Short | Price | Pips +/- | R/R (Max/Min) |
|---|---|---|---|
| Entry Price | 0.6040 | ||
| Stop Loss (Min) | 0.6107 | -67 Pips | |
| Stop Loss (Max) | 0.6167 | -127 Pips | |
| Profit 1 | 0.5850 | +190 Pips | 1 : 2.8 / 1 : 1.5 |
| Profit 2 | 0.5550 | +490 Pips | 1 : 7.3 / 1 : 3.8 |
Details:
NZD and USD remain top of the forex strength vs weak tables.
NZD as the weakest currency and USD as the strongest.
This suggests that price of NZDUSD could continue to trade lower if we have our trading conditions met.
Traders viewing a weekly chart can see that price has traded through support of 0.6100.
From a weekly time frame perspective, this opens up a move down to supporting lows of 0.5550 which formed in September 2022.
If price heads towards this level, it will offer several potential trading opportunities.
Going down to a H4 time frame, price has recently traded outside of a consolidation pattern.
If price retests this pattern as resistance, around 0.6040 we can look to sell this market, with targets being the daily support of 0.5850 and overall targets of 0.5550.
Technical Observations:
- USD is S1 and NZD W1 on both live forex strength vs weakness tables.
- NZDUSD price is trading below the key support level of 0.6100.
- Price is also trading below the daily 200 moving average.
- Price has broken down through a consolidation low, offering selling opportunities.
- Day traders could look for price to retest lows before selling.
- Sellers could target 0.5850 and 0.5550.
Todays 9am (BST) Forex Strength Vs Weakness Tables:
