AUDNZD-ideal setup for a long
This pair is still making a complex corrective structure not very clear.
So i will use another non-traditional tools like the "personality" of this pair and EW guidelines.
Looking at monthly chart we can see price had a similar behaviour when reached all-time highs.
It retraced to the 0.61 fib retracement and formed a perfect head and shoulders pattern.
We could have the same behaviour here. Some other reasons are:
- Previous wave 4 acting as support
- 0.61 fib retracement
- Strong structure
- round level 1.05000 as support
- potential inverse head and shoulders pattern
I will place buy limit orders near 1.055. IF price gets there it will be a high probability trade.
SL below the round level 1.0500
I prefer to anticipate the market to have a better R/R ratio. Its just my trading style. Other traders would prefer to wait for a confirmation and thats very valid.
Best regards
So i will use another non-traditional tools like the "personality" of this pair and EW guidelines.
Looking at monthly chart we can see price had a similar behaviour when reached all-time highs.
It retraced to the 0.61 fib retracement and formed a perfect head and shoulders pattern.
We could have the same behaviour here. Some other reasons are:
- Previous wave 4 acting as support
- 0.61 fib retracement
- Strong structure
- round level 1.05000 as support
- potential inverse head and shoulders pattern
I will place buy limit orders near 1.055. IF price gets there it will be a high probability trade.
SL below the round level 1.0500
I prefer to anticipate the market to have a better R/R ratio. Its just my trading style. Other traders would prefer to wait for a confirmation and thats very valid.
Best regards