The NZD/USD chart shows the formation of a Harmonic pattern. If confirmed, the price recently touched the D point, suggesting a potential bullish reversal after a significant bearish move from point C.
According to the TDGMA indicator, the asset is nearing an oversold region, supporting the idea of a possible short-term recovery. Additionally, point D aligns around the 0.605 level, which has acted as a resistance zone in the past.
1. Buy from Point D (Bullish Reversal)
Rationale: The Gartley pattern is one of the most reliable in terms of reversals, especially when point D coincides with strong technical support, as seen here. Moreover, the TDGMA indicator signals oversold conditions, suggesting that the market might be gearing up for a bullish reversal. The risk lies in waiting for confirmation of this reversal. Entry: After confirming a strong bullish candle above point D. Take Profit (TP): 0.6194 Stop Loss (SL): 0.6050 (below point D for added security)
The Gartley pattern offers a solid buy opportunity at point D with a high probability of success. The support area and oversold conditions further strengthen the reversal thesis. However, more conservative traders may wait for a test of the resistance before entering.
As always, it's essential to monitor price action, particularly on lower time frames, before take position.