EUR/NZD Approaching Buying Opportunity at 1.9631

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

Forex Trading involves high risks, with the potential for substantial losses and is not suitable for all persons. Past performance is not necessarily indicative of future results.

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.

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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