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NZDCHF - SELL IDEA

Short
OANDA:NZDCHF   NZD/CHF
Hello TradingView Community,

Let's delve into the NZDCHF pair, which is currently displaying a compelling setup for a short position, based on Elliott Wave theory. Analyzing the 30-minute chart, we can see the completion of a five-wave sequence followed by what appears to be a corrective ABC pattern.

Following the peak of wave (5), NZDCHF has embarked on a corrective phase, with wave 'a' pushing downward aggressively, and wave 'b' retracing back up slightly. We're now observing the development of wave 'c', which is expected to be an impulsive move lower, potentially completing the overall correction.

Based on the Fibonacci extensions of wave 'a', targets for wave 'c' are set at 0.53893 (100% extension) and possibly extending to 0.53571 (161.8% extension). These levels are chosen due to their significance in previous price interactions and the natural tendency of wave 'c' to extend.

Traders considering this opportunity may want to set a stop-loss above the recent high of wave 'b' at around 0.54188 to mitigate risk. This strategy offers a favorable risk-reward ratio, considering the potential for a notable move down.

As always, ensure to monitor price action closely and adjust your trading plan based on new information. This looks to be a promising setup, but remember, risk management is key to long-term success in trading.

Trade closed manually

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