NZD/USD One Step Away From A Major Buy Signal

0
11

In this analysis, I will show You a great trading opportunity for the future. There is no trading signal here yet, but once it will be triggered, we should receive a sweet long-term deal, with a target of hundreds of pips. This setup is present on the and for a legitimate signal we just need several pips.

Formation, which you can see marked with a yellow color is an inverse head and shoulders pattern. This is a strong bullish pattern, announcing a movement to the upside. One thing is missing here though – breakout of the blue neckline. Today, tried to jump above this resistance but without a success.

Apparently, we will have to wait a bit more. Another positive sign here is the breakout of the red down trendline, which was connecting lower highs since the end of July. Last but not least is the blue horizontal support. It is absolutely crucial here and shows us, that iH&S pattern did not emerge in a random place. The blue support comes from the long-term lows from 2015 – in theory, that is a sweet spot for a reversal, the best one on this pair.

NZDUSD H4

NZDUSD H4

To sum things up, as for now, we have to wait. In theory, the proper buy signal, will be triggered, when the price will break the blue neckline. Positive sentiment will be denied, once the price will come back below the red line but as for now, it is rather unlikely.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.