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EUR/NZD Approaching Buying Opportunity at 1.9631

The information, including Commentary and Trade Ideas, provided on FX360.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. Global Forex Trading and FX360 .com is merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. Any projections or views of the market provided by FX360.com may not prove to be accurate.

Last updated 10/21/2009 7:51 PM EST (GMT -5) 2 Comments

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Bradley W. Gareiss

Technical Analyst, GFT

The EUR/NZD is forming a bullish butterfly on the 15min Chart below.  The pattern has very nice symmetry although the pair could quickly rise above the current point C.  The pair is also forming a longer term bullish butterfly on the 30min Chart.  Notice that the CD leg on the longer term pattern actually contains the shorter term pattern.  Multiple patterns forming within each other generally increase the possibility of a winning trade.

We are looking to buy the EUR/NZD if the pair falls to 1.9631 (Point D).  Point D is located at the convergence of the following points:

We will now go over what to watch for assuming the EUR/NZD continues falling toward our entry at 1.9631.  If the pair moves down rapidly and has long bars near point D, we will not enter the trade.  Also, if the pair comes within 10 pips of reaching our entry, does not enter, and reaches T1 before entering, the trade is invalid.  The trade is also invalid if the pair rises above 1.9840 before hitting our entry.

To recap, we will look to buy the EUR/NZD at 1.9631 with our stop placed at 1.9570.  Our initial profit targets are 1.9717 (38.2% of CD on the 30min Chart) and 1.9786 (61.8% of CD on the 30min Chart).

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  • 30min Chart - Longer term bullish butterfly.
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  • 15min Chart - Bullish butterfly; buy at 1.9631.

The information, including Commentary and Trade Ideas, provided on FX360.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. Global Forex Trading and FX360 .com is merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. Any projections or views of the market provided by FX360.com may not prove to be accurate.

The views of the authors and analysts are not necessarily those of Global Forex Trading, its owners, officers, agents or other employees. FX360.com and the currency research team will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on FX360.com. Global Forex Trading and the currency research team do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.

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Comments (2)

Irfan

October 22, 2009 at 07:10 PM ET

for Eur/Usd.......you just put new entry for Eur/Usd to sell at 1.5106 .........but u didnt delete the one u put yesterday 1.5053 is that one still valed as an other entry........pls do let us know...Thanks

bgareiss

October 22, 2009 at 07:14 PM ET

The short at 1.5053 was invalidated as described in yesterday's trade invalidation possibilities. The only current EUR/USD trade setup is the one to sell at 1.5106. Brad

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