The NZD got a boost during the Asian session with China lowering interest rates.
As price ran into sellers above the Asian highs, a short setup consistent with USD strength presents itself. With an initial 22 pip stop loss for a potential 78 pips to our Target 2, a short is taken. Price moved down through yesterday’s high… then came back to retest the level. We tightened our profit stop and keep moving it down. When we see that price bounces off our Target 1, leaving a very wicky candle, we close the trade giving back almost 10 pips.
Following Mario Draghi’s comments yesterday we have seen the USD strengthen once again.
Looking forward to next week. Europe and the UK move to Standard time this weekend.
Good luck with your trading and enjoy your weekend!