Short term trade on the AUDNZD
Hello everyone, I hope trading is going well for all of you. As you can tell, this isn't my usual technical analysis. Typically I chart out tech companies on the NYSE, but for some reason I am getting more and more interested in currencies. I enjoy the fact that they are open more often than the stock exchange and I find the wave patterns a lot easier to chart.
Elliott wave analysis:
From what I can see, we appear to be in the wave c of a wave b of a larger correction. Right now I am expecting a zigzag with a 1:1 ratio from the wave A and wave C. (I am referring to the light blue letters in this case). So the target will be around 1.07723 and the lower boundary of the golden pocket. Any break below the current swing low would be a sign to get out.
Moving Average Analysis:
The moving average shows us that there is huge bullish potential. On the 1 hour we have bounced of the 200 ema and the smaller ema's are fanning which is an incredibly bullish sign. In addition to this, we have also bounced off of the 200 ema on the 4 hour time frame which is another bullish sign.
Macd analysis: On the 6 hour, things are looking incredibly bullish. We see that the macd has crossed over to the top side and looks to be headed even higher. On the 2 hour macd we can spot a zero line reversal which is another bullish sign.
Relative Strength Index Analysis: The Relative strength index is looking really bullish too. It has bounced off a support on the 2 hour and headed way into oversold, but incredibly bullish territory. I do not see this as a sign to start selling yet, since all the other indicators are looking bullish. On the 6 hour, we also seem to have broken the previous RSI high, and are almost into oversold territory.
Overall, I would say this is bullish
Target is 1.07723
Stop loss is 1.06519.
Goodluck and have a great day trading tomorrow.
Elliott wave analysis:
From what I can see, we appear to be in the wave c of a wave b of a larger correction. Right now I am expecting a zigzag with a 1:1 ratio from the wave A and wave C. (I am referring to the light blue letters in this case). So the target will be around 1.07723 and the lower boundary of the golden pocket. Any break below the current swing low would be a sign to get out.
Moving Average Analysis:
The moving average shows us that there is huge bullish potential. On the 1 hour we have bounced of the 200 ema and the smaller ema's are fanning which is an incredibly bullish sign. In addition to this, we have also bounced off of the 200 ema on the 4 hour time frame which is another bullish sign.
Macd analysis: On the 6 hour, things are looking incredibly bullish. We see that the macd has crossed over to the top side and looks to be headed even higher. On the 2 hour macd we can spot a zero line reversal which is another bullish sign.
Relative Strength Index Analysis: The Relative strength index is looking really bullish too. It has bounced off a support on the 2 hour and headed way into oversold, but incredibly bullish territory. I do not see this as a sign to start selling yet, since all the other indicators are looking bullish. On the 6 hour, we also seem to have broken the previous RSI high, and are almost into oversold territory.
Overall, I would say this is bullish
Target is 1.07723
Stop loss is 1.06519.
Goodluck and have a great day trading tomorrow.
Comment:
Hey, I hope this idea became profitable for all of you. It is a shame that I AUDCHF wasn't able to carry to the heights I wanted it to, but oh well, there was still a nice profit to be made here. I guess the takeaway from this trade is to not expect perfect scenarios but to adjust to what is happening real-time. In this case, we anticipated a 1:1 extension, but saw a little above the .764. I should have anticipated that the 0.618 golden pocket would be a very heavy resistance to break into and that we probably wouldn't make it in there perfectly.