Cory Mitchell, CMT

Looking at trade setups in the NZDCHF, EURGBP, AUDNZD, and USDNOK.

I have placed orders in NZDCHF, long, and EURGBP, short.

AUDNZD and USDNOK I am stalking for an entry.

I'll show the hourly charts for context, but the actual entry points are based on either 15- or 5-minute charts. 

EURGBP

  • At the top of a large range extending back to early April.
  • Recently took out prior range highs, but then stalled. Possible false breakout to the upside.
  • Short near 0.8851 to 0.8846. May present other opportunities on 15- or 5-minute if a new consolidation forms and the price breaks that consolidation to the downside. 
  • Stop loss above 0.8871. If the price drops aggressively, SL can be dropped to just above 0.8861.
  • Target near 0.8770 which is just above a rising trendline running through the range.
  • Even if stopped out, I will continue to watch for a new opportunity as long as the price is in the resistance zone. 
  • 3.6R (reward-to-risk).

NZDCHF

  • Near the bottom of an ascending channel (price structure) which started in late March.
  • Price has stalled near the bottom of the channel for the last two days. 
  • Long above 0.5816. 
    • Stop loss below 0.5805.
    • Target near 0.5880.
    • 6.9R.

AUDNZD

This pair, along with the AUDCAD, have been actively traded recently as they are in resistance areas. The AUDCAD had a hard drop yesterday and AUDNZD continues to hang out near the top of a descending channel on the daily chart.

I am waiting for a better short entry, potentially along the short-term falling trendline. But the price needs to move up there first, then stall out, and then drop to provide an entry. 

  • Potential target down near 1.0650
  • It could be a 7R trade, but I don't have an entry yet.
  • A sharp strong rally would invalid the trade idea for now.

CHART SHOWS AN ESTIMATED ENTRY. IT HASN'T SIGNALED, AND MAY NOT.

For more on these types of trades, check out the Pre-Trade Checklist, and the following video on Price Structures.

By Cory Mitchell, CMT @corymitc

Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using leverage.

Assume I have positions, all the time, in many pairs.

Trades are based on strategies and are not meant to be predictions. The number of trades won varies between 30% and 60% based on the strategy. My objective is to make money based on solid reward:risk ratios, not try to predict every move of the market.

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