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NZDUSD – Trading around historical highs

Many traders are afraid to go long when the market reaches new highs/lows, but I don’t see a reason to be afraid. The only thing that worries me a bit is that we don’t know where the market might retrace, but that’s the reason I use in these types of trades a risk-reward ratio of 3:1.

This is the case of the NZDUSD, it is currently trading around historical highs, in a clear bullish market condition:

As long as the NZDUSD keeps trading above 0.8025 I’ll be looking for long opportunities.

Trade Safe!

Raul Lopez
Forex Training

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This entry was posted on Thursday, June 9th, 2011 at 5:17 pm and is filed under Technical. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

2 Responses to “NZDUSD – Trading around historical highs”

  1. Anonymous says:
    June 12, 2011 at 2:55 pm

    I will be looking to sell around  .7950 area…..looks very over bought to me….buy around  .7340 area..

    • Raul Lopez says:
      June 13, 2011 at 2:14 pm

      The NZDUSD came back to the range, which is now from 0.8291 – 0.8076, I’ll wait for the market to break this range before loooking for any trade opportunity…

      Regards,

      Raul