AUDNZD trade ideaOne good thing about trading Currency, there is always another trade. And at times setups show up in groups of similar patterns across multiple pairs.
Longer term chart patterns are much more reliable as patterns to play. First being a longer time frame chart pattern means more trades have been applied to form these pattern, and when they break—the moves are much more sudden and have a greater momentum behind them. All of which attracts new money into the direction or squeezes out those who are on the wrong side of the trade.
AUDNZD is just one pair where I have spotted a potential 5 wave Elliott pattern. This pattern usually is a sign of a 3 wave correction that should be coming, In other words a reversal pattern that can be played to a high degree.
My chart here is a 4H chart and what I see as the potential 5 wave top seems to be in place. ( it’s really not a top till it has been retested or a new top reset )
Usually in Asia trade or early in European trade after a bigger move in NY trade, a new push to retest the newly tops or bottoms in such wave patterns happen to a higher degree.
So for the over night ( my night that is ) I’m going to place a short order close to the marked 5th wave and another a tad bit higher ( in case of a retest or a new top takes place.)
I’ll place a 50 pip stop, and will target 1.0440-60 as my first profit target.
Al the best in your trades
Remember, either you make dust or you eat dust. Plan your trade and trade your plans.
