Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Interesting setup on the exotic instrument (NZDSGD)

ByAlpari Research & Analysis
AuthorTomasz Wisniewski
Published 11/06/2017, 05:26 AM
Updated 05/14/2017, 06:45 AM

Sometimes traders get too obsessed with the major pair on the market and they trade them even without a proper trading signal. As a technical trader, sometimes you should not about the fact if this pair is a major or an exotic instrument and just go for a nice price action setup.

In this case, we spotted a nice occasion on the NZDSGD, a pair which probably you didn't even know that is available on your platform. Currently the pair is declining sharply and all odds are in the favour of the sellers. Since the end of July, the pair is in the strong downtrend. First big troubles started at the beginning of the October, when we broke the long-term up trendline (black). That changed the game and the price easily broke two horizontal supports: 0.956 (grey) and 0.946 (red). The second one is super important in the long-term as it was respected many times in the first half of the 2016 (both as a support and resistance).

Currently, as expected by the Price Action rules, the price is testing 0.946 as a closest resistance. First contact is good sellers, as the price bounced and is heading lower. That opens a way to the support on the 0.914 (green area, 2016 lows). As a result, we have a great trading opportunity in terms of the risk to reward ratio (high potential profit and small loss). Sentiment stays negative as long as the price is kept below the red area. NZDSGD

Latest comments

Really helpful
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.