NZDCHF is approaching our first resistance at 0.6947 (horizontal swing high resistance, 78.6% fibonacci retracement, 100% extension) where a strong drop might occur below this level pushing price down to our major support at 0.6825 (horizontal swing low support).
Stochastic is also approaching resistance where we might see a corresponding drop in price.
D1 - Price reached the bottom of the triangle pattern and is moving higher.
H4 - Price broke above the downtrend line, bullish divergence.
H1 - Bullish convergence, we may now look for pullbacks and buys with bullish evidences.
Price has printed a buy signal on the trend line (doji)
Note the ascending triangle pattern, so this setup offers a great risk to reward ratio!
Entering at market price 0.68417 with
SL below the low at 0.68154 and
TP as per the triangle pattern target IF it breaks higher at 0.70768
Don't bet the farm, always exercise good risk management!
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NZDCHF is another pair related to NZD that is falling down.
This one is going down after a top ABCD wave with E targeting 350 pips lower .
Trade with care and STOP LOSS.
Good luck with FOMC later.
LESS IS MORE!
The daily chart of NZDCHF shows that the uptrend from Sep. to Dec., 2018 is a textbook five-wave impulse pattern, labeled 1-2-3-4-5 of (A). According to Elliot Wave theory, a three-wave correction in the opposite direction follows every impulse.
So far, we have seen a five-wave impulse in A of (B) and double three combination (w-x-y) in B of (B)....
Depending on your risk place stop in the area of the blue lines. Target the green line (50 pips). Please like or comment if this trade idea has been helpful. More great content & trades to come so please follow. Thanks!
Wait for certain conditions before a possible entry:
- Short Candle formations
- Fundamentals to continue being in favor for a short
- Major holder of gold
- Uncertain economic situation causes investors to buy gold through brexit, trade war and EU debt crisis
- This appreciates the CHF
- "NZ trade deficit hits $791m in Jan -...