adamwoods

AUD/NZD Long Idea (Bullish Pennant)

FX:AUDNZD   Australian Dollar / New Zealand Dollar
Price has formed a bullish pennant pattern on the daily chart , starting back in March.

I'm using the 3rd touch=breakout rule to judge where price is likely to break out. With the addition of a support level through the middle of the formation, this helped me realise that price would NOT break out to the downside on the third touch, leading me to believe price will break out above the structure on its third touch of the resistance trendline.

I have put my target price level at the high of the structure (@ 1.0330) with the SL positioned in line with previous lows. The RR of this trade is 4.8, although this trade could rise up even higher, achieving a target magnitude equivalent to the overall height of the structure.

Disclaimer:
Understand that investing in any financial market is a risk. All investments and trading decisions should be based on your own judgement. By using this idea you are agreeing that you and only you are responsible for your own trading or any investment decisions that you make. Anything offered here is not investment advice nor pressuring or forcing you to use your money in any way. Resources are provided to you based on experiences; it is still your responsibility to do your own due diligence before making a decision.

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