This is a 1 hour chart of NZD/USD. We shorted at .8250 with a stop above the swing high with a first target of .8225 and second target of .8190. If the first target is hit we'll move the stop to break-even.
The rationale behind the trade: Continued trend of USD strength exhibited in February, commodity currency weakness across the board so far this morning, the bearish engulfing candlestick pattern just put in on this 1 hour chart, and a continuation of a descending channel on the 4 hour chart.
The Aussie has run up over 200 pips since it put in a swing low at 1.0120 and the pair has not put in a decent retracement since then, so we feel it has more "room" for a push lower and our targets are a little more ambitious - 1.0245 and 1.0200
As always, we fully recognize that we could easily be wrong - the key to trading profitably is to not lose much on trades that go against us and to let our winners run. That's why it's important to ALWAYS define the risk taken on EVERY trade!
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