This pair is still making a complex corrective structure not very clear. So i will use another non-traditional tools like the "personality" of this pair and EW guidelines. Looking at monthly chart we can see price had a similar behaviour when reached all-time highs. It retraced to the 0.61 fib retracement and formed a perfect head and shoulders pattern.
We could have the same behaviour here. Some other reasons are:
- Previous wave 4 acting as support - 0.61 fib retracement - Strong structure - round level 1.05000 as support - potential inverse head and shoulders pattern
I will place buy limit orders near 1.055. IF price gets there it will be a high probability trade. SL below the round level 1.0500
I prefer to anticipate the market to have a better R/R ratio. Its just my trading style. Other traders would prefer to wait for a confirmation and thats very valid.
Best regards
评论
AndrewHook
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Interesting idea. Today and tomorrow data will be published for both currencies (AU employment today/ Nz CPI tomorrow). Next big up could be for Oz ;) Lets see and good luck.
FullTimeTrader
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it could take more time because both pairs a getting stronger a the same time. We have RBNZ rate statement on Wed-oct-28. This could be a great catalyst if they cut rates. Regards.