New Zealand Trade Balance
Let us consider the NZD/USD currency pair on the daily chart. We observe a bearish trend caused by the expected negative Trade Balance to be released in New Zealnd on Friday. The price approached the weekly support line at 0.64917, which is confirmed by Bill Williams fractal. At the moment the instrument is rebounding towards the green zone, which is assured by the double bottom pattern, formed by the RSI-Bars oscillator. The signal breached the trend line and shaped a bullish reversal pattern. The movement can be considered confirmed if the price crosses the support at 0.67743, which will launch Donchian Channel and Parabolic towards the green zone.
A sell pending order can be placed at this mark. A stop loss may be placed on the Donchian Channel opposite boundary at 0.64917. This level is supported by the weekly support line and Bill Williams fractal. The stop order is supposed to be moved every four hours to the next fractal low, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point.
|Buy stop||above 0.67743|
|Stop loss||below 0.64917|