Idea is based on Elliott wave theory and the use of Fibonacci extension ratio confluence. Stochs are used for wave confirmation. More info on the chart. Good luck
Hey Hamza, how you doing mate? Currently market is in a clear downtrend, at least for short-term. I'm only looking for long opportunities on this pair. Better to stay with the trend :)
NQunlocked
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Hey mate, I am good thank you, you? one more push upwards is not unlikely. However, as long as that orange pitchfork is intact, I will keep my short bias. Good luck to you my friend.
moneymaking
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Hey Hamza, I commend you for your analysis on shorting this strong bullish pair. I really hope this works out for you, I tried shorting this at least twice and was stopped out both times. I would really advise you, NOT that you need any; you're one of the BEST traders according to me :), to actively manage your shorting positions on this pair. The bulls are still going to party hard on this pair, they might take a little break, but they will be BACK :)
TahirAli
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Hi moneymaking you are right about that.Another interest rate cut is expected by New Zeland on coming wednesday.After that there will be another sell off.As a whole New Zeland's dollar's position looks bleak.Right now this set up is very risky(IMHO).
moneymaking
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Hey Tahir, In my opinion it's very unlikely to see another cut in the interest rates of New Zealand, since they just cut it to 3.25% from 3.50% this previous month, June/10/2015. I haven't seen a Bank cut interest rate twice within 2 months time span. If it does happen than this will be a new experience to me :)
TahirAli
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Hi moneymaking,Lots of experts are expecting that rate cut on wednesday because in spite of cutting the rate recently,their 3.25% rate is still the highest among all the notable currencies.My point is why to take a chance,one should wait at least till wednesday to avoid stop loss being hit.
moneymaking
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Hey Tahir, Yes, waiting till Wednesday is definitely a good idea. All the BEST mate :)
NQunlocked
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Thank you for the kind words my friend. Thing is, as you can see from my other idea's my technical analysis yields a bearish bias for GBPUSD and bullish bias for NZDUSD, so due to the correlation and the stand alone analysis for this pair I am expecting a correction. However, if we break the next confluence line (2.449) to the upside, I will be definitely aiming for 2.540 and may very well short there. As soon as you let fundamentals dictate your decision making process (which is in my case always based on technicals) you become hesitant and unable to follow up on the decisions which are the result of your technical analysis. That is why we have a system of risk management in place, taking losses is just part of the game. What matters is that your winners are far more glorious than your losers :-) Wishing you the best mate.
TahirAli
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Hi friend,I wish you all the best for this set up.Please don't take me wrong as I never intended to prove your analysis wrong,my concern was that that as a trader one shouldn't lose money.