20 Oct GUEST POST: NZD USD Swing Short Set-up Analysis
Here is a really nice short set-up on NZDUSD that I have found.
The first chart shows confluence of:
1) A previous area of support and resistance.
2) The 55 and 200 ema’s.
3) 38.2 % fib retracement from the peak printed on August 1st.
4) 50% fib retracement from the peak printed on August 31st.
5) 0.8000 round number.
Short entry can be on the break of 0.7855 or on a retest of the 0.8000 level with a stop at circa 0.8075.
First target would be the low that was printed on 4th October (circa 0.7500 – note another nice round number).
Second target would be the 161.8% fib extension of waves 1 and 2 which just happens to coincide with the low that was printed on March 16th of this year (circa 0.7147).
Please note, waves 1 and 2 are for labelling purposes only and are not suggestive of any Elliott Wave counts.