Short NZDUSD, a new low suggest the set up is confirmed
NZDUSD has made a new low in recent hours suggesting that the recent pullback is complete and that the blue wave 4 is in place. This has important implications for the other two live trades at the moment, it is my view that we just have one market so when the NZDUSD confirms it is going lower it implies that the rest of the US pairs will follow and also make new lows. This suggests that the AUDUSD and GBPUSD trades will make a new low confirming their pullbacks are also complete.
I have counted the current move lower as the first part of the final move of the correction which began on 16th February as a C leg of a larger pattern beginning Nov 2017, the target for this final move is around 0.6650 but the path will not be a straight line. Should the final target be reached the trade will have had a risk reward of 11:1.
On the larger time frame, the NZDUSD appears to be in an uptrend that began in mid-2015 this current correction must end above 0.6200 to keep that move higher intact. A break of 0.62 would suggest that NZDUSD is going to test the 2010 lows at 0.5000, either way, the current move will be important for the longer term picture and should offer significant swing trading opportunities.
I have counted the current move lower as the first part of the final move of the correction which began on 16th February as a C leg of a larger pattern beginning Nov 2017, the target for this final move is around 0.6650 but the path will not be a straight line. Should the final target be reached the trade will have had a risk reward of 11:1.
On the larger time frame, the NZDUSD appears to be in an uptrend that began in mid-2015 this current correction must end above 0.6200 to keep that move higher intact. A break of 0.62 would suggest that NZDUSD is going to test the 2010 lows at 0.5000, either way, the current move will be important for the longer term picture and should offer significant swing trading opportunities.
Trade active:
I have this morning added to this position and will continue holding for target
