Hi Traders! NZDUSD support zone provides buy opportunity for us. A detailed analysis of this bullish setup is as follows:
NZDUSD Daily Chart:
On the daily chart we have a good support zone that has formed and the price is respecting this zone so far. Currently the price is bouncing from this strong support zone and is holding above it. Until this support zone holds, we may start looking for evidences of bullish pressure on lower timeframes in order to join the bulls.
NZDUSD H4 Chart:
On the H4 chart we have a bullish divergence that has formed which we may consider as an evidence of bullish pressure. We may now look for more evidences of bullish pressure on lower timeframes in order to start looking for buys.
NZDUSD H1 Chart:
On the H1 chart the price has created a bullish divergence and then the price moved higher creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. As per the book scenario we may look for corrections and then continuation to the upside. In addition to this the price has also broken above the downtrend line, which we may consider as an evidence of bullish pressure. We may now look for pullbacks and then buys with more bullish evidences.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
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