Categories: Technical Analysis

NZDUSD close to the bottom of a channel

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

Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.

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