CAD/NZD Daily Chart Breakout Eyeing 1.1500
CAD/NZD broke through a multi – month trend line and targeting at least 1.1500
Elliott Wave – CAD/NZD
Completing the B Wave of the possible ABC ZigZag or Wave 2.
Commencing the bare minimum wave C or extended impulse wave 3 to break A.
- Price below above the 200 EMA
- Price holding above the 50 EMA
- Fibonacci 78.6% support was found on daily
- Retest of 50 EMA provides optimal entry with bullish candlestick reversal
Support – 50 EMA, 1.1250
Resistance – 200 EMA, 1.1420, 1.1500, 1.1645
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 1.1275
Supporting Entry – 1.300
Candle Reversals for entry
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 1.1250 level and violates 50 EMA – 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 1.1275 – Target 1 1.1420 = 3x Reward to Risk
Optimal Entry 1.1275 – Target 2 1.1500 = 5x Reward to Risk
Optimal Entry 1.1275 – Target 3 1.1645 = 8x Reward to Risk
Supporting Entry 1.300 – Target 1 1.1420 = 2x Reward to Risk
Supporting Entry 1.300 – Target 2 1.1500 = 3x Reward to Risk
Supporting Entry 1.300 – Target 3 1.1645 = 5.5xReward to Risk