- The NZD/USD pair is likely to continue
straight from 0.7515. Support at 0.7515 coincides with ratio of 00% Fibonacci
retracement level in the H1 chart. Additionally, it is probably going to form a
double bottom at the same level. Therefore, the kiwi shows signs of strength
following the break through the highest levels of 0.7515 and 0.7550. So, it is
going to be a good sign to buy above the support levels of 0.7515 and 0.7550
with the first target at 0.7603 in order to retest a weekly pivot point and
further 0.9636 (it will act as strong resistance, it is going to be a good
place to take profit, it also should be noted that the level to take profit
will coincide at 88.2% of Fibonacci at the same time frame). It should be noted that another resistance is set at the level of 0.7696, which represents the double bottom. However, in case a reversal takes place and the NZD/USD pair breaks through the support level at 0.7550, the market will be led to further decline to 0.7466 in order to indicate the bearish market on March 27, 2015.
- Stop loss should never exceed your maximum exposure amounts.
- Risk to reward ratios are important and should be calculated.
- A risk reward ratio of 1:1.5 is recommended:
- Risk of 60 pips should make a profit of 90 pips. 60 pips * 1:1.5 = 90 pips.
The material has been provided by InstaForex Company – www.instaforex.com