Top trade idea for May 5th, 2016 – NZDUSD
By Mircea Vasiu on May 5, 2016 11:41:30 GMT
The NZDUSD pair here is forming the c wave of a flat pattern that must be confirmed and this confirmation comes only if market completely retraces wave c in green until that vertical blue line.
Going into the NFP tomorrow this is going to be quite interesting in the sense that this abc move in green is ending a flat pattern as an x wave. Because it comes after a bearish zigzag, it must be continued by a move lower that most of the times is an aggressive impulsive wave.
ADP on Wednesday proved to be a disappointment as not only the release was below expectations, but the previous month has been revised on the downside as well. This puts pressure on the NFP to come on the soft side, but the chart above is actually telling us that US dollar bulls are not gone yet.
We’ll find out the outcome pretty quick, but it is recommended to stay short for 0.6350 with 0.71 stop loss as this will confirm the pattern.
About Mircea Vasiu
Mircea Vasiu has an MBA in International Business from an American University, graduating Magna Cum Laudae. He has been a professional trader for the last 8 years and is involved in various educational projects for different financial companies. He also runs a trading signal for the currency markets at www.capitalpropertiesfx.com.
Recent posts by Mircea Vasiu
- Top trade idea for November 17th, 2016 – EURAUD
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- Top trade idea for November 3rd, 2016 – USDCAD
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