NZD/JPY | Price action trading by Keon Consultancy
- KeonConsultancy.com
- Feb 24, 2020
- 1 min read
NZD/USD shifted trend to bullish on H4 after gains of Friday. Today's price action stayed bullish in initial hours, so H4 is more likely to be closed as a bullish candles and hence MACD trend is more likely to remain bullish. NZD seems to be filling the gap.
Having scene the scenario of JPY as explained in USD/JPY analysis, we decided to trade NZD/JPY. The pair has recently been trading in range inside Bollinger band, so an upswing is likely to take place. We entered after price action of initial two hours of today. The screenshot displays exit and entry points.
The gap has been filled, so it may no longer a reason to attract NZD/USD up. Moving SL to BE is a good idea because NZD/USD is in strong downtrend on bigger time-frames like D1 and W1. Let's see if it hits immediate resistance/TP.
Since our plan is to break even out of trades of NZD/JPY and NZD/USD, we couldn't risk more. Therefore, we moved SL to BE in NZD/USD.
Having seen the bearish engulfing on Friday on D1 time-frame of USD-index and downward continuation in USD-index along with US-stocks today right after stock market opened, we think that theory explained about USD-index in this analysis, is gonna work even in the end of Feb just like it did in end of last 4 consecutive months. Therefore, we exited buy of NZD/JPY and entered buy in NZD/USD aiming to break even.
Modification in SL/exit plan: we'll see if D1 closes below low of Feb 19.