NZDUSD@ Potential Pullback Before Going Long

FX:NZDUSD   New Zealand Dollar / U.S. Dollar
760 9 16
NZDUSD             is bullish . We recently had a clear breakout of a key resistance level with a sharp move up. Counting waves it's clear that price has formed 5 waves and the fact that RSI is showing a bearish divergence makes us believe that it's time for a correction, and an ABC corrective pattern.

The best way to trade this pair is to wait for the abc to complete and go long for another rally. But a short trade here has a lot of potential. That divergence is showing that the rally is running out of steam. As for profit target we should aim for 0.5 - 0.618 fib zone of the 5 wave leg.

If price reaches out target we we look for a setup to go long.
Comment: Still active to this (short position) a bearish bat pattern has completed and looks like it is pushing price to the down. Its CD leg has been completed with a 5 wave up something that is telling me that it's time for a correction, in our favour.

Trade closed manually: Market is consolidating with both directions possible. I will close this trade with 1:1 profit..
Nice wave count, better i will wait for the pullback. Regards.
Fxprotrader FullTimeTrader
That's the best option.. But this short setup has potential to be success..!
IvanLabrie Fxprotrader
More reasons for the short:

Scary, but doable. I'd wait for the daily to turn down, under the open at the very least. SL over the high and aim for the completion of wave 2.
Fxprotrader IvanLabrie
Brilliant analysis Ivan.. Thank you for that extra info..!
IvanLabrie Fxprotrader
Just the concepts of time at mode applied, as well as some neowave rules.
You have a keen eye, you should check out Glenn Neely's material, might be of interest.
Fxprotrader IvanLabrie
To be honest its you i first listened to this in one of my previous posts ideas. I will definitaly check this out.. Thank you for your support Ivan!
+1 Reply
Looks like a pretty good count.
I think the same.
+1 Reply
IvanLabrie IvanLabrie
People fail to see, but the rally clearly starts in the next higher low...good eye.
+1 Reply
Fxprotrader IvanLabrie
Yes Ivan. This one is an easy wave count. So clear.. The pair is bullish though. The best option is someone to wait for that correction to be completed. The next move up should be a wave 3 of a larger degree..
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