NZDUSD Short Divergent Setup

NZDUSD short divergent setup

The NZDUSD is now solidly Divergent on 1 hour, Stochastic overbought and MACD declining.  AUDUSD is also in a similar pattern but not as convincing to me quite yet.  The NZDUSD looks better to me but both have the same setup risk in that 800 SMA is not too far off.  On the plus side the daily pivots are both below price now.  So maybe they hit the 800 and turn around OR forget the 800 and go for the daily pivots?   I have not traded these pairs for a while but looks interesting.

 

I have a small test position on the NZDUSD and am just watching the AUDUSD at this point. 

 

Safe trading,

 

Mike

EURUSD Long?

 EURUSD FIb 4HR

I have been watching and profiting from the EURUSD slide the past few weeks but think we may be ready for a retracement.  FIB retracements from recent lows back to mid January highs line up well with past s/r levels and are good targets for me.  I have a trade I put on this morning going long to the .618 less a bit of padding.  Initial profit target = 1.3947.  If we break convincingly above the 62 on the 4 hour I’ll move up my stop and target profits.

On the other hand, if the pair goes the other way (Greece news bias to the upside but you never know), my stop is just below the recent lows at 1.3570.  This would just mean time to wait for another chance at a retracement for me.  I attached a big pic view using the 4 hour charts.  I used the 1 hour for timing of the trade.

Safe trading,

Mike