Correction expected // Eventual AB=CD and Cypher // Clones ®

2015年10月12日

NZDUSD

5 waves impulse leg, one correction is expected.

Let's see IF the price break previous structure (4), giving us a new lower low around point A. (Look left previous structure pressure zone)

Then, point B for a Cypher pattern (a lower high) can be forged somewhere between the 38.2 and 61.8% retracement forging one AB=CD potential setup with a target at previous resistance and now daily support (D1) , the 141.4% extension, point C for Cypher, also a potential buy opportunity.

The projection for point D stays somewhere around the 78.6% from X to C leg, close to weekly resistance.
When completed, short with expectation to hit the 38.2% retracement as first target, and the 61.8% as second target.

Taking the big picture, the market can enter into a consolidation period, inside this daily support (D1) and weekly resistance (W1) "box"

note:*Zoom out to check clones synced and acting as support and resistance levels.*

The plan:
2 shorts vs 2 longs:
Get Short on weekly resistance (W1) - SL above it - wait a retracement, short the 61.8% retracement (IF=THEN) to break previous structure point A, hit the support (D1), forge point C, enter Long searching for point D, enter short IF completed.

CYPHER:
Point B:
38.2% to 61.8% XA
Point C:
127% to 141% ext XA
Point D:
78.6% XC
Target:
TP1 38.2% CD
TP2 61.8% CD

Safe trades;