Hi Traders! NZDUSD triple cycle provides buy opportunity for us. A detailed analysis of this buy setup is as follows:
NZDUSD H4 Chart:
On the H4 chart we had a triple cycle up, which has completed itself. Currently it looks like a correction is happening in the form of double wave down. As per the book scenario we may now expect the price to move lower until it reaches the 38.2% – 50% fibo retrace zone of this entire triple cycle. Based on the fibo extension levels of the first leg of this double wave the 161.8 fibo level coincides exactly on the same area with the 38.2% – 50% fibo retrace zone, thus forming a magnet zone for us. Hence we may now expect one more push lower with the price reaching the magnet zone and bullish divergence to form. Once the price reaches the magnet zone look for more confirmations of bullish reversal in the form of false break, trend line breakout, etc… We may then start looking for buys.
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 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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