Today were going to take a look at one of my favourite currency pairs, The KIWI!
Now i've been eyeing this setup for awhile but i think were finally ready to see a major break lower, The bearish pennant is tightening and has held well over the past few days.
The pennant seems to be forming slightly above a previous strong resistance level and also the psychologically significant price level of 0.7000 forming somewhat of a support area between 0.7000 and 0.7025
We should be looking to enter above the support area somewhere in the region of 0.7030 and 0.7040.
We should place our stop just above the previous significant high at around 0.7125 - 0.7130 giving us a stop of under 100 pips.
Our take profit should be placed just above july's low 0.6825 giving us a take profit of just over 200 pips for a total reward to risk ratio of over 2:1.
Hope you've enjoyed reading and if you have any comments please feel free to leave them below
Happy trading, Lee J Brown
http://www.profxblog.com/
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