We have an awesome opportunity with the NZD/USD. The market formed another low and high on the 2 -hour chart that seems to be long lasting till this point. I believe that we have enough time in the month left that the un-hit monthly target is really pulling the market the way we want it. In addition, we missed a weekly target from the previous week; giving us some added confirmation the range is holding.
Effectively, this market has struck the D extension for this swing (screams to me pull back) and hit the yearly price target for the year of 2017 (again, screaming pull back). I like these smaller risk versus reward trades since we are going to wait for the market to pull back and create a better buy low price at roughly .68915 before we enter long. We will then be risking 40 pips and going after 200 pips in the missed weekly target from last week. If we are in luck, this market will pull back all the way to the missed monthly target for March. That would be a 440 pips reward. Not bad for the risk we are incurring!
Again this is the way I find my opportunities, they are generally mostly technical at first but usually, have a fundamental factor driving them. To get this trade to pop all we need is a bit of dollar weakness, a strong milk report from New Zealand or a dash of interest rate news and we have a HUGE trade potentially!