Since the beginning of the year, the NZD / USD pair has moved 14,500 pips, but ahead is a very interesting level, beyond which fixing of long positions may begin. This is the round level of 0.7.
Besides being round, 0.7 is also the top of 2019, as well as an important high in 2018. For buyers, reaching this price will be an excellent reason to take profits, while for mid-term speculators, this is an opportunity to make money on counter-trend trades.
The market could roll back at any time, but this should happen after reaching the level of 0.7.
In that regard, the correct strategy for the NZD/USD pair is to open short positions only BEYOND the levels shown in the picture above.
If traders open shorts even a bit earlier, they will fall into the trap of setting stop orders for 0.7.
The right approach is to wait for a false breakout, and only after it should traders work for a fall.
This idea is under the Price Action and Stop Hunting strategies.
Of course, there is still the need to monitor and control the risks to avoid losing profit. As we all know, trading in this market is precarious and uncertain, but very profitable as long as we use the right strategies.
The material has been provided by InstaForex Company – www.instaforex.com
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