There are strong indications that the Kiwi will be dominated by the bulls this month. In this article, we will look at the pattern complete and what price is expected to do next. We will also provide possible trade entry , exit and target prices for educational purposes only. Trader’s discretion applies.
From the end of July and all of August, the bears dominated in what was clearly a corrective move. The long term view shows price in a bullish correction since early May. It’s highly likely that price will rally further to 0.77 price projection or even higher. The 1-month fall that included all of August has been described as the (b)-wave of the long term bullish correction. The wave (c) is a triple zigzag pattern as shown clearly by the chart below.
The chart above shows the upward space to be covered if price moves as expected. An bullish impulse wave (c) that could be as much as wave (a) is expected and we want to see how to take advantage of it. This setup is invalid below 0.7125. The following is our trade bias.
Buying Zone – 0.7230-0.7260
Stop loss/Invalid level: 0.7125
Target 1: 0.7420
Target 2: 0.7560
Target 3: 0.7670
Final Target: 0.7860
Stay tuned for more updates to know how this setup goes.
Let’s know your view by your comments below.