EURNZD has been in a pretty well-defined upward-sloping fork since early April. It's now grinding against this fork's lower quartile (LQ), and seems to be in the CD leg of downwardly impulsive ABCD.
Several possibilities for a long could present: 1) a bounce up off the LQ 2) if the LQ is crossed, the CD leg's P midpoint - a likely turning point - is pretty close to a sliding parallel that should also offer support for an upward bounce.
Depending on how EURNZD moves in the immediate future, a long trade with minimum RRR of 3-4 could be possible.
Comments
ForceFollower
⋅
A very nice reading of price action. I like your structure. It inspired me to make my own analysis based on it. I expect further decline to complete the doubling of the parallelogram to the downside.
cryptoyoda
⋅
:) I guess it's what you'd expect after crossing a pitchfork's ML, and I did notice an ABCD-like structure pointing that way (orange box):
But I kind of discounted it because the early bars were so choppy. Now that you mention it, the bars from 'a' to B are much more impulsive-looking - on 4hr view they meet RA's criteria - and put D right at a sliding parallel. I think that makes sense given the deviation above the top of the fork. But then, your parallels are basically like using a wider fork, which also makes sense!
ForceFollower
⋅
That's right, I'm also happy about it. Just take into account the caveat that I'm no oracle, fortune-teller, clairvoyant, I've got no crystal ball, no magic wand etc. :-))) I may be wrong, but if was to risk my own money on EUR/NZD, I'd only look to go short (with a stop above the A or the lower high 5 bars prior to it).
cryptoyoda
⋅
Ok, it's deleted all the forks... This is what I meant: