Looking for a Long on NZDUSD (possibly the 5th wave)
Reasoning for the trade:
1. Break of daily trendline followed by corrective price action
2. Test of horizontal resistence that may act as support
3. Test of area that should have latent orders that require filling
4. RSI oversold, testing 40 on Daily
5. A recovery in Crude prices will help NZD recover aswell (because New Zealand & Australia are energy producers)
6. Testing fibonacci 50% mark which is common at the termination of the 4th wave
7. News is clear until JAN 22 CPI (this may be seen as a reason against the trade also bc no news catalyst)
Projections are 1.27% of the total move from the lows.
Reasoning against the trade:
1. We may have more downside as the area of latent orders has just been touched
2. Asking the NZD to move up this much would imply a move down in the USD -- this must be your thesis if you take this trade.
R:R is good, and is worth the shot.
Money management:
take 50% @ 1:1
after 1:1 may move stop to lows created within the BUY ZONE
take 50% @ target
Reasoning for the trade:
1. Break of daily trendline followed by corrective price action
2. Test of horizontal resistence that may act as support
3. Test of area that should have latent orders that require filling
4. RSI oversold, testing 40 on Daily
5. A recovery in Crude prices will help NZD recover aswell (because New Zealand & Australia are energy producers)
6. Testing fibonacci 50% mark which is common at the termination of the 4th wave
7. News is clear until JAN 22 CPI (this may be seen as a reason against the trade also bc no news catalyst)
Projections are 1.27% of the total move from the lows.
Reasoning against the trade:
1. We may have more downside as the area of latent orders has just been touched
2. Asking the NZD to move up this much would imply a move down in the USD -- this must be your thesis if you take this trade.
R:R is good, and is worth the shot.
Money management:
take 50% @ 1:1
after 1:1 may move stop to lows created within the BUY ZONE
take 50% @ target
Comment:
picture without all the indicators