September Pay Your Mortgage Trade Setup Idea: EUR/NZD
Scott Barkley | Sep 12, 2017 11:56AM ET
This month's ProAct Traders “Pay Your Mortgage Trade” idea is found in the EUR/NZD pair.
09/11/17 1.6485 start
Screenshot 1: We see that we have created a nice down trend started in this pair and 2 waves completed. We have convergence on the pair which strengthens the bearish position for the pair. We are looking for an initial big move to the 0.618 Fibo @ 1.6262. Watch for a significant bounce there to print a 4th corrective wave before the resumption to the downside. Any pullback offers increased opportunity to add positions.
Screenshot 2: The overall target from here is 472 Pips away @ the S6/ bottom (1.6013).
How to trade it? You will need to wait for your set-up to show up, for London and New York traders, that will mean waiting for the reaction now in the current area. Take your first entry and use the respective risk reward ratio to start trading this currency pair. We have preplaced entry orders (sell stops) on the break of each Fib and barrier to the downside and any rally should be considered an area to add to the position. DO NOT TRY AND CROWD THIS PAIR WITH TIGHT STOPS. Remember the “pullback is your friend” in route so use those to add to the position.
Be careful at the S5/ 0.382 Fibo @ 1.6249.
The pair typically has pullbacks in the 90-120 pips range so every pullback could add an additional 90-120 pips to the trade with another position. Currently the ATR (14 Day - Average True Range) of the currency is 145 Pips per day, so this might take about 2 weeks with pullbacks!
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.