artem1309

Long NZDCAD from the lower bound of the range

FX:NZDCAD   New Zealand Dollar/Canadian Dollar
Set-up: consolidation in a range (0.8900-0.9250) after a sharp movement on the daily chart .
Inability to break the support level at 0.89 on a second test.

Idea: Long NZD/CAD from the support level at 0.89000 in anticipation of a false breakout and a consecutive price increase.

Stop loss level: 0.87900
Exit plan: close the position before stop loss level should the price move and stay below the support level .

Take profit:
1) ambitious: 0.92300 (upper bound of the range)
2) conservative: 0.90900 (middle of the range)
May 08
Comment: Entering the market just before the interest rate decision was probably not the best idea😁
However, the spike didn’t reach our stop loss and just confirmed the rejection of lower prices by the market.
The new stop loss is now well justified below the spike (still around 0.87900).
Waiting for the close of the day.
May 08
Comment: The day has closed a bit below the initial support level (0.89) but there is no evidence of a proper breakout as the price is stale around the support level. We've got a nice spike below the level as a sign of rejection of the lower prices.
I'll keep the position as long as there is no further descent, anticipating that the price will return into the range. Otherwise, will close manually should the price move clearly lower.
May 09
Comment: Still in the position as the price didn't move any lower. Actually, the close of the trading day is now even closer to the support level which is another positive sign of a potential false breakout.
May 19
Trade closed: stop reached: Stopped out at 0.87761

Comments

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