NZDUSD Bearish Momentum Expected from Anti-Butterfly Pattern

Harmonic Pattern Formation: Anti-Butterfly (XABCD)

• NZDUSD is currently forming an Anti-Butterfly Harmonic Pattern on the 4-hour time frame.
  
• The pattern consists of four distinct legs: X, A, B, and C, with Point D indicating a potential reversal area.
  
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Confluence with Trendline and Fibonacci Level:

• The Anti-Butterfly pattern is accompanied by a trendline, adding confluence to the potential reversal zone.
  
• Price has exhibited a strong rejection at a key resistance level and the 0.618 Fibonacci retracement level, indicating significant selling pressure.
  

Bearish Momentum Expected from Point D:
With the rejection at resistance and Fibonacci level, we anticipate a shift in momentum towards a bearish trend from Point D of the harmonic pattern.

Trade Setup:

• Entry: 0.59215
  
• Stop Loss: 0.59560
  

Profit Targets:

• TP-1: 0.58867
  
• TP-2: 0.58525
  
• TP-3: 0.58175
  

Rationale:

• The entry point aligns with the anticipated reversal from Point D of the harmonic pattern, offering a favorable risk-reward ratio.
  
• The stop loss is placed above the recent swing high to mitigate potential losses in case of a reversal.
  
• Profit targets are set at key support levels based on previous price action and Fibonacci extensions.
  
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Risk Management:
Maintain proper position sizing to limit exposure to potential losses.
Regularly monitor the trade for any signs of invalidation or early exit signals.

Disclaimer:
Trading involves substantial risk and is not suitable for all investors. Past performance is not indicative of future results. Always conduct your own analysis and consider your risk tolerance before entering any trade.