First of all a reminder that we are in an NFP week and that could be the reason for many zig-zags and false breaks. Trade carefully, trade with caution, use smaller risk if and when needed and try to take only the best and most obvious setups.
Today in my opinion NZDUSD offers a nice buy opportunity. The pair is nicely trading inside a channel and it is now getting closer to the bottom of it. Pair already made band-to-band move on the daily chart and it is currently developing bullish hidden divergence (which it must be confirmed). On the four hour chart we see that the level we are looking for would coincide with the completion of the double wave cycle to the down side which is another great confirmation of this trade setup. We should be looking for an entry on the intra-day charts. Once the price is near the up trend line and the support zone around 0.7460 we can look for bullish divergence to be created and go for a long with pretty small risk, covering the line and the support, aiming the middle of the channel.
Technical Analysis Overview:
D1 – channel, band-to-band move, hidden bullish divergence forming
H4 – potential bearish double wave cycle
Entry:
M30/M15 – Look for bullish divergence near the up trend line and the support zone around 0.7460. Once completed go for a buy
Target: 0.7600 – middle of the channel
Stop Loss: below the support zone and the up trend line
Video Explanation
Yours,
Vlad
