AUD:NZD correction could end here

AUD:NZD correction could end here


Aussie:Kiwi looks to me to be a good example of a potential ABC buy set up.

The move down from the peak at X has so far taken the form of 3 swings and has now arrived at a Fib cluster zone.

If price rejects this cluster zone by forming a trend trough here, it will be a buy set up under this strategy which looks for the end of the correction and a resumption of the uptrend.

Although, it isn't shown on this chart, the stochastic oscillator is over sold on both the daily and weekly time frame. This is added encouragement for those looking to position for trend reversal

One approach to your entry rule is to wait for a close above the high of the candle making the trough before buying. This could occur with a strong close to today's candle.

However, if price does not isolate a trend trough here, the set up may remain in play. There are 2 possibilities. The first is that price drifts a little lower but still ends up isolating a trough in the current cluster zone. The second is a move down to and a rejection of the 2nd cluster zone on the chart down at around 1.2750.

The first Fib cluster consists of a 50% retracement of the OX uptrend. It also projects that the B to C swing will be 127% of X to A and 161.8% of the A to B correction