A Swing Trade In NZDUSD – Check out the Head & Shoulder Pattern! - Forex News by FX Leaders

A Swing Trade In NZDUSD – Check out the Head & Shoulder Pattern!

Posted Thursday, August 17, 2017 by
Arslan Butt • 1 min read

A couple of days back, we bagged a good number of pips on NZD/USD due to the head & shoulder pattern. Now it's time to take another exciting trade, but this time it's going to be a swing trade. Let's take a look…

Technical View – NZD/USD

On the daily timeframe, we can see the pair forming a head and shoulder pattern. At the moment, it's jumping higher after testing the neck line support at $0.7224, or we can also call it a triple bottom support level.

Yesterday, the pair concluded the day with the bullish engulfing candle, suggesting investors' strong bullish sentiment. However, that was mostly due to the weakness in the U.S. dollar.

NZDUSD - Daily Chart - Head & Shoulder Pattern NZDUSD – Daily Chart – Head & Shoulder Pattern

On the daily time frame, the Stochastic is oversold while it's also over bought on the 4-hour timeframe. Moreover, the 50- periods EMA is signaling a bearish trend.

NZD/USD Trade Plan

The idea is to hold a buy position above $0.7225 with a target of 0.7375 & $0.7500. While, on the other hand, sell below $0.7375 with a target of $0.7225 and $0.7065 if the market fails to break $0.7375.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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