NZDUSD@ Potential Pullback Before Going Long

NZDUSD is bullish. We recently had a clear breakout of a key resistance level with a sharp move up. Counting waves it's clear that price has formed 5 waves and the fact that RSI is showing a bearish divergence makes us believe that it's time for a correction, and an ABC corrective pattern.

The best way to trade this pair is to wait for the abc to complete and go long for another rally. But a short trade here has a lot of potential. That divergence is showing that the rally is running out of steam. As for profit target we should aim for 0.5 - 0.618 fib zone of the 5 wave leg.

If price reaches out target we we look for a setup to go long.

Bình luận:

Still active to this (short position) a bearish bat pattern has completed and looks like it is pushing price to the down. Its CD leg has been completed with a 5 wave up something that is telling me that it's time for a correction, in our favour.

Giao dịch được đóng thủ công:

Market is consolidating with both directions possible. I will close this trade with 1:1 profit..