NZD/USD Daily
Long or Short: SHORT
Entry Point: .8450
Stop Loss: .8610
Profit Target/s: Aiming for .8000
Reward-to-risk Ratio: Just under 3:1
Risk percentage: 3%
Indicators used: Fibonacci retracement / Stochastic (9,3,3)
Trade Rationale: After last week’s poor NFP data, I think that we will see less risk taking in the markets. I think safe havens like the dollar will rally next week and currencies pairs like NZD/USD will experience a sharp drop similar to what we saw a few weeks back.
I used a Fibonacci retracement and saw that the recent rally stopped right at the 61.8 Fib level. Dojis formed and stochastic just crossed over. I think we could see a down move over the next couple of weeks.
Trade Adjustments: I will utilize a trailing stop of 150 pips, meaning that I will move my stop up 150 pips everytime the trade goes my way by 150 pips.