On the daily time frame The NZD has made an impulse followed by a triangle. A triangle cannot Be a wave 2 alone. So i'm counting the impulse as a wave A and the Triangle as a wave B. The NZD finished wave c of the triangle around the time of the RBNZ Meeting on the 13th of Feb. Listening to the RBNZ they saw risks balanced and status Quo they would be leaving rates unchanged through 2019-2020. There were a lot of questions in the Press conference about NZ Banks possibly having to increase there reserves, this would have a tightening effect on Monetary conditions (NZD Bullish?) The NZD finished the Day strongly higher. The genesis of the push has been partly retraced and we now have a nice bullish engulfing candle, the bottom of the candle I'm going to count as the completion of the triangle. I'm looking to buy the top of this candle with a stop at the bottom, The ultimate target would be equality leg of impulse wave A at aprox .7290
Trade active:
ok OK. Just realised my plan on NZD is ALL WRONG!! 2 REASONS. Reason 1 - USD looks strong against most pairs now due to EUR Weakness from a Stimulatory ECB. SO, Life as a trader is hard enough without picking a fight with USD right now. Secondly, Triangles are there to try our patience! I have seen an important flaw in my analysis, this triangle could have a long way to go yet before it's finished, but if the setup i'm going to wait for does eventuate my conviction will be all the stronger!
