A trade idea for Monday
In today's guest trader post, Martin has a look at a setup for a trade on Monday. In yesterday's trade Martin bought gold and it's up $6 today. Make sure to check out the 8 principles to trade by.
I don't execute usually trades on late Friday and especially near NFP event, so GBP/NZD will remain for Monday.
I am viewing the pair as it has a good double top setup for taking short positions. Price is right in the support zone (neck of the double top) and CCI is moving below the 50 level. Yet, the 50 moving average and the 38.2 Fibo remain strong support zones. It's a risky trade also as it is in the uptrend short - term channel. The target of the figure is 176 pips and my SL level is 115 pips from the Fibo level. I know, I know... not much risk/reward ratio, but it the figure plays out, it can trade well below the overall target of the figure towards the 1.94180 or 100 Fibo.
Also as an argument I'll use the expected rise in NZD as AUD also catches some bid on trade deal hopes and overall risk sentiment improvement and rising gold prices (again). Btw, on my last Gold analysis I executed the long position on 10.01.2020 at 15:30 (my local time).
On Monday I'll be watching for the green zone to be breached and wait for a close below that level to take a short position. I remind you that the chart is on a 4H timeframe.
Thanks for reading and have a great weekend.
