off support is my all-time favorite technical pattern, and I see something like that emerging on NZDCHF
. Ideally, the wick is fully below support; in this instance, the bottom of the wick is touching support, so it is not the best hammer
off support pattern out there. However, I still find it to be adequate and worth the risk. My stop is 40 pips below my entry, which also puts it below the 50 SMA
. My target is the recent all-time high at 7750, which gives me a reward/risk of greater than 3:1.