NZD/USD— With Short in Play, More than Half the Position Booked as the Kiwi Moves Lower

NZD/USD (0.7518)

Trade Strategy: Short at 0.7782

• Resistance Levels: 0.76, 0.7680, 0.7810
• Support Levels: 0.7528, 0.7420, 0.7274

The NZD/USD continues to move lower. This is expected after forming a bearish reversal on the below daily MT 4 chart. Price action is now hitting three year lows.

We have moved below the channel support at 0.7528. Daily close below this level targets 0.7420. A break below 0.7420, which we are testing now, targets the support at 0.7274/75. Should the Kiwi reverse direction, then we need to close back above the channel bottom to challenge the key pivot at 0.76. A close above 0.76 targets the technical resistance at 0.7680.

I went short NZD at 0.7782, this means I sold the NZD/USD at that level, and have now booked more than half my position.  My strategy is to now catch as much downside, and profits, as I can without losing more than my original trade. Therefore, I have moved my stop loss to breakeven at 0.7781. Why 0.7781? Should price move through, and above that level, it will activate at 0.7782, which is breakeven.