Overview:
- 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.
Observations:
- Stop loss should never exceed your maximum exposure amounts.
- Risk to reward ratios are important and should be calculated.
Example:
- 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.
