Published On: Mon, Mar 6th, 2017

Fibonacci confluence area highlights dip buying trade in NZDUSD

InstaForex

Background


USD Index 

For those of you who regularly follow our report, you will know that we are sellers in the USD index with the prime short entry level being 102.00.

Monthly – this is the Fibonacci confluence area on the monthly chart

Source: Saxo Bank 

Daily – 102.05 is the 61.8% pullback level on the daily chart (from 103.82-99.19)

Source: Saxo Bank
The calendar lacks any high strength releases today but RBNZ’s Wheeler is due to speaks later so there is scope for a spike lower to buy into. This is not only technically sound, but also holds with the USD index view. 

Monthly – large expanding-wedge formation that has an eventual bias to break to the downside. We have now traded through the January Marabuzo at 0.7118. Will we see a monthly close above this level? 

Source: Saxo Bank

Daily – in an expanding-wedge formation that has an eventual bias to break to the upside! 0.7000-0.6970 has been a pivotal area through most 2016. 

Source: Saxo Bank

Intraday (six-hours) – we have a Fibonacci confluence area at 0.6975-0.6970. With the intraday chart close to a DeMark 13 count (exhaustion) we are expecting at least a bounce from this level (a disjointed bullish Gartley)

Source: Saxo Bank 

Management and risk description
A move through 0.7050 and we look to move stop to entry

Parameters

Entry: Buying at 0.6980

Stop:0.6940

Target: 0.7200 and 0.7500

Time horizon: Medium-term 1-2 weeks

— Edited by Jack Davies

Non-independent investment research disclaimer applies. Read more
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