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