Back
23 May 2014
NZD/USD: Potential buy setup around 0.8520 - 2ndSkies
FXStreet (Bali) - Chris Capre, Founder at 2ndSkies Forex, notes a potential buy setup in the NZD/USD circa 0.8520 given that the market structure appears to suggest an expanding triangle is in play.
Key Quotes
"On May 7th in our daily market commentary, we talked about the expanding triangle and how the overall structure was supportive for a bullish continuation, after a return to the bottom of said triangle."
"The pair is getting quite close to that support level around 8520/30. The order flow beyond such a structure suggests to us the upside is more favored, and this is further supported by ichimoku wave theory (a Y-wave structure)."
"I'm placing a limit order to buy around 8520 with stops below the 'big figure' at 8500. Upside targets will be 8600 (daily 20 ema) while gunning for a larger move up to 8700+, ideally tagging near the upper 10% of the rising resistance line which currently comes in around 8790."
Key Quotes
"On May 7th in our daily market commentary, we talked about the expanding triangle and how the overall structure was supportive for a bullish continuation, after a return to the bottom of said triangle."
"The pair is getting quite close to that support level around 8520/30. The order flow beyond such a structure suggests to us the upside is more favored, and this is further supported by ichimoku wave theory (a Y-wave structure)."
"I'm placing a limit order to buy around 8520 with stops below the 'big figure' at 8500. Upside targets will be 8600 (daily 20 ema) while gunning for a larger move up to 8700+, ideally tagging near the upper 10% of the rising resistance line which currently comes in around 8790."