Good morning traders, today we bring you our bullish setup in the EUR/NZD pair along with its long-term analysis.
🔸As we see in the 4H chart, the price is in a great consolidation at the edge of the bearish channel.
🔸Regarding the corrective pattern, it is a clear A-B-C pattern, which we can now consider finished.
🔸If we draw the trendline of the corrective move, it has already been broken.
🔸Although the previous point is evident, we consider that the safe place to take bullish positions above wave B of the correction, since it is the previous high, and, if it is penetrated to the upside, that will be a clear bullish signal.
🔸Regarding to the stop loss, it is positioned below the structure.
🔸The take profit is in the next Resistance zone.
🔸The reason why we look for this setup in the 4H chart is because of the clear bounce that the price is making in a huge zone in the weekly chart, we can see it below.
🔸As we see in the 4H chart, the price is in a great consolidation at the edge of the bearish channel.
🔸Regarding the corrective pattern, it is a clear A-B-C pattern, which we can now consider finished.
🔸If we draw the trendline of the corrective move, it has already been broken.
🔸Although the previous point is evident, we consider that the safe place to take bullish positions above wave B of the correction, since it is the previous high, and, if it is penetrated to the upside, that will be a clear bullish signal.
🔸Regarding to the stop loss, it is positioned below the structure.
🔸The take profit is in the next Resistance zone.
🔸The reason why we look for this setup in the 4H chart is because of the clear bounce that the price is making in a huge zone in the weekly chart, we can see it below.