BUOVB formed on D1 in an uptrend. Along trendline , SR and EMA’s. So there is support and PA, and we are in and uptrend. Problem is a lot of uncertainty right now with US China trade war and US yields underperformance and fears of recession. Continued good relations is good for NZD. There is not a lot of conviction in the market in the form of volume around this PA.
The pair seems undersold on the H4 chart, but a lot of bearish volume.
My fear is that it may take several days to make that TP level - and there may be fundamental events that change the conditions of the trade before it hits.
I only risk 1% just to see if I’m right. The only doubt I have about this trade is:
-only one PA signal, the BUOVB
-a lot of questions around fundamentals
I would rate this a 2, although I’m not sure about this. Could be a better setup. It’s supported by SR(?), trendline, and EMA’s. Nothing to stop it from reaching TP at next SR zone.
My fear is that I’m trading just to trade. Also - this conforms to my trading rules, but political situaton makes it a little risky.
See NZD/USD Weekly Price Outlook: Kiwi Rally Runs into Resistance
Confirms bullish bias, not sure if that will help this trade though.
We had a bullish move last night, but price pushed down again today.