EUR/NZD Buy Opportunity Emerging...

Last updated 2/9/2010 1:13 PM EST (GMT -5) 2 Comments

FX360 Technical Analyst Staff

Technical Analyst, GFT

An emerging EUR/NZD bullish Gartley pattern points to a buying opportunity near projected pattern completion (point D) near 1.9755 followed by 1.9670. These Fibonacci based support levels, which coincide with projected pattern completion, increase the odds of at least a temporary bullish correction. Prices over the past several days have been unable to close above daily fib resistance near 2.000 which makes it especially important to watch for warning signs prior to entry. In other words, we will look to enter long near 1.9755 unless we see gaps and/or wide-ranging candles prior to entry. If these do show up, or if additional reversal signs are not present near 1.9755 (bullish pattern completion on shorter timeframes, for example), we will look instead to enter near secondary pattern completion around 1.9671. It's a bit too early to make a solid call in terms of stops/targets, but there is nice pattern symmetry, which is a good thing as long as prices remain below point C (near 2.00) prior to pattern completion. The quick pierce of 2.00 resistance late last week does crack open the door for continued bullish momentum up to the next level of converging daily fib resistance near 2.02 followed by  2.0450, so this potential pullback would provide an ideal buying opportunity assuming there's still juice left to the upside. Otherwise, a move below previously established support at point X (1.9564) points to a switch in near-term momentum suggesting bearish continuation down to 127.2% or 161.8% of XA near 1.9430 and 1.9255, respectively.

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Comments (2)

fishmanszmit

February 10, 2010 at 06:47 PM ET

Is this still a valid trade? still waiting for it? Can you give some details on this trade please? Thank you guys for all you do!!

rstojsic

February 11, 2010 at 09:36 AM ET

too much bearish momentum so still on sidelines.

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