FX:AUDNZD Australian Dollar/New Zealand Dollar
The trade opened at 1.05 is now up close to 300 pips. The 3 box reversal point and figure chart is signaling a buy signal with a close above 1.08, the 1.08 coincides with a break of resistance on the standard candle chartset some time ago, I will be taking the trade should it materialise. Existing trade set up is linked. Please note 3 box reversal systems trades require LONG stops and are not suitable for short and medium term traders, my time frame for trades is measured in months and trades can swing more than 500 pips in either direction.
Despite he fact that the pair closed above the l1.08 I illustrated in the description and that the point and figure issued a buy signal I have decided against taking the trade. RSI has moved into heavily oversold territory hinting that a turn lower may be ahead, I will review when the RSI figure drops below 72