Welcome trading legends! This time we’ll be trading the USD/NZD asset. For this trade, we shall be using the IQ Option broker and the Forex trading signals from ToolsTrades. Let’s begin:
While entering our signal data allow me to explain why I’m using the USD/NZD asset:
As idle cash looks to find a strong and secure yield, it is no wonder that the New Zealand Dollar has benefited from the current Euro-Zone crisis. Pairs such as the Australian Dollar and New Zealand Dollar are often viewed as a proxy for Chinese growth and thus have performed well against the Euro in recent years. Although Chinese growth may become a cause for concern as the nation shifts away from export-led growth, weakness in the Euro-Zone may cap any significant reversal.
Also, be sure to watch our last video on the History of Forex trading as you will learn many interesting facts and step up your trading game.
When we compare last week’s EUR and NZD COT Report, we can see that the EUR is dominating once again with its long contract positions. This week we saw another huge increase and for the near, future we can expect the EUR to hold its strong upward momentum.
This may lead the EUR/NZD pair to reach the psychological 2.0000 mark.
For more than 3 years now, the price keeps respecting our weekly bottom trendline. It was broken twice, but demand pressure came not long after. This on the other hand leads to multiple attempts to reach the monthly supply zones near 1.80000 and 1.90000.
The COVID-19 Pandemic pushed priced over the 1.90000 and it almost reached the 2.0000, but a rejection came right away, and we didn’t see a weekly close above 1.90000. A few weeks ago, the price reached the bottom trendline and it received support once again. From a technical and COT perspective, we have 1 possible scenario:
1. Price moving towards the 1.90000 area, where it aligns perfectly with the 0.618 Fibonacci level of the previous down wave. If we see a strong break above it, a move towards 2.00000 may take place. While price moves towards the weekly critical zone, a couple of small corrections may happen.
As with most things in life, you are very unlikely to be a successful FX trader straight away. The continued trading practice is the only way to achieve those top results on a consistent basis.
Another of our Forex tips to follow is to keep an analysis of your trading activity in a journal. Don't just analyze the trades and the patterns themselves, but also the thinking,assumptions, and information behind your decisions to make those trades.
When reviewing your work, constantly ask yourself questions about your decision making. Why did I make that trade?
Why did I choose that currency pair? Everybody learns from their mistakes and it is easier to do this if you have a record of these written down.
Be sure to check out the video:
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