AUD/NZD flag for possible upside to 1.073

AUD/NZD sitting at the lower Bollinger band on the daily chart clustering with 200 EMA.

AUD/NZD

Price also break above 1 – hour time frame trend line, and 15-minute chart showing a flag for possible upside. Wait for a clean break of flat for AUD/NZD execution.

AUD/NZD
Key Points:

  • Daily – Price at 200 EMA
  • Daily – Price at lower Bollinger band
  • 1 – Hour – Price above trend line
  • Consolidating into a possible flag for upside
  • Watching 50 EMA to reclaim
  • Wait for a solid close above the flag

Key Levels:
Support – 1.06925, 1.06790
Resistance – 1.07300
 
Entry Zone:
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 1.07019
 
Candle Reversals for entry

  • Bullish Hammer
  • Bullish Engulfing
  • Bullish PiercingCandlestick

 
The Risk:
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
 
IF: Price breaks below 1.06882 – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
 
Reward / Reward Targets:
Optimal Entry 1.07019 – Target 1 1.07300 = 2x Reward to Risk

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