FX setup commentary - 30 July 2012

NZDUSD - Daily Chart

This pair has caught my attention as breakout occurred. The price has breakthrough the key resistance level at 0.80500 last week with "big" and "obvious" bullish engulfing bar. The 0.80500 level used to be support level in the past somewhere around March'12 to May'12.

The bias of this pair now is bullish and and it breakout from key level (0.80500). We anticipate that the price will rally (never come back) and moving upwards to the next key resistance level - 0.82500. The setup of this trade is as follow:

Entry                :     0.80864
Profit Target     :     0.82500
Stoploss           :     0.80100
Reward            :     1,636 pipettes
Risk                 :     764 pipettes
R/R ratio          :     2.1

(Note: The above calculation not inclusive of spread charged by different brokers)