The EUR/NZD has built a strong bullish impulse. But price action has reached one of the main targets at Wizz 8. Could this create a correction?
Price Charts and Technical Analysis
A shallow pullback at Wizz 8 is indeed expected – despite the strong momentum. A bull flag or triangle pattern would confirm the potential wave 4 (orange) pattern. A breakout above the Wizz 8 level indicates an immediate continuation. Whereas a break below the support (purple) invalidates it (red x).
SWAT traders had the opportunity to find long setups based on momentum confirmation. As mentioned in the live SWAT webinar, this was indicated by the green dots and blue diamond (green box). Price action swiftly hit the target at Wizz 8 for about a +120 pips win. Now the question is whether the bullish swing is part of a wave 3 or C (purple). This will depend on the price action at the support zone.
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter
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This article was originally posted on FX Empire
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