On 60 mins chart. price has performed two section (A&B) of an ABC correction. Shaded blue area represent end of Wave C target where we will look for reversal candles for a short setup.
Wave C target is derived from a confluence of fib levels where internal retracement 76.4%, APP 100%, external retracement 127.2% ...
NZDUSD making a potential ABC correction, so far 2 section of formation has been completed: point A & B. We have identified a potential price zone for its corrective reversal by establishing the following:
Internal retracement at 61.8% forming a tight price zone with
APP at 100% (from O to A from B) +
Buy on retest of support ard 1.2197 (fib 38.2%). Target: 1.2374 (61.8% fib level). SL 1.2152 (previous high close)
Reasons to long:
a) close above DMA signal change in trend
b) Price action has broken short term resistance
c) MACD indicates continued upside momentum