NZDUSD is stalling now ahead of the RBNZ rate decision. Rate decisions nowadays are all the rage. And have been the cause of much . But if you ignore the news and just look at the chart, it is telling a clear tale.
Here in this 4HR chart, you can clearly see that NZDUSD has already turned a corner and is dropping again after a nice long clear trading channel up. It broke that channel and reversed.
We went SHORT on this pair last week when our PENDING SELL ORDER was triggered. And when prices dropped as predicted, we moved the SL to B/E. Currently, we are already up over +110 pips. Here's the trade call given to my members:
TRADE ALERT: NZDUSD PENDING ORDER
R:R 3.5 risk: 95*4 reward: 339*4 ranking: 3.5
Trade Active. Trade Update: Move SL to B/E
Back in July, prices made a high after finishing a move up. I've labeled that a wave (A). If you don't know why I labeled it that way, refer to the longer term Quick Reference charts on NZDUSD here: Basic Quick Reference Charts.
Following that wave (A), of course there is to be the corrective wave (B). It needs to unfold in 3 waves. The first wave down after the completion of the wave (A) was impulsive. That means that it should be the wave A of (B). The next wave up that finished recently unfolded in a complex WXY pattern. That makes it corrective. So what we are expecting is that the next wave down, the wave C of (B) needs to unfold in an 5 wave impulsive manner. So far, it is looking like it is but of course is still much too early to tell how it will do so. So by my wave count, the current wave MUST be a impulsive wave DOWN in a wave C of (B). So that means that there is no where to go but DOWN. It's clear.
The main pattern at play here is the POTENTIAL Bat. However, that bat's completion D point would complete way outside the larger expanding diagonal pattern which I don't favor happening. Again, refer to the in the Basic Quick Reference page to see what I am referring to. But regardless, the is still useful in helping to indicate the price direction.
In the meantime, here are the 2 ways I think that it could play out going forward:
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Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
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