Commentary on the NZD/USD

Forexmentor.com Forex Trading Price Action

Jim Cowles asked me to talk about the New Zealand Kiwi. The monthly chart is trending up, but the weekly is displaying major resistance at the 3300 level, and MACD is diverging negatively to price action. The 3300 level was strategic September through November of last year. The 200 EMA is trending up on the daily and weekly charts. So, for the time being, this is a watch situation.

Greg Wexell asked me if I was sitting on the sidelines, now that I have liquidated my USD/CAD position, and the answer is yes. I am primarily into position trading these days, and good trades (that is, bankable) don’t come along often. I called the short on the euro last June, and I pushed the USD/CAD pair to the long side last September. Both calls worked out in my favor, and I profited handsomely with the latter pair.

So, to make a fat story thin, you have to be especially patient when it comes to position trading. The same applies to day trading. Patience is definitely a virtue in this business. If you have a need for speed, then play around in your sandbox. Training and education are also important factors. To that end, stay tuned to the latest and greatest at www.forexmentor.com.

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