Chart of the day: AUD/NZD looking great for longs on pullback

Chart of the day 14th May 2018

Greetings one and all. Starting from today I will be doing a new feature for ForexLive. It will be the Chart of the Day post and I will put it under the technical section. The idea of the post is to give trade ideas for the coming sessions, days or weeks. Today’s post is a swing trade idea for this week.

We are all set with our pair now; AUD/NZD long.

Where to enter? Well you could enter at market and put your stop below the bottom swing on the 4 hour chart. However, I favour a pull back here to the 38.2% or 50% fib level marked on the  4 hour chart displayed. I am going to be eyeing these levels for a long trade and then play the stop either below the swing point on the 4hr or a lot tighter when I see price move in my favour. 

Risks to the trade? Well, data releases from the RBA will need to be factored in. NZD has one release, Annual budget release, on Thursday. As they are both commodity currencies , we don’t need to worry too much about the price of commodities influence on one part of the pairs. That risk should be neutralised.