NZD/USD H4 Time frame Our Expectations: Breakaway of a diagonal resistance and ex-horizontal structural resistance - now support. Opportunity for long positions with a short stop loss and an excellent risk/reward ratio.
Alternative scenario: If the H4 bar lowers and couldn't close as an engulfing one, the price may go again inside the Ichimoku cloud. In this case scenario, we wait for a successful and confirmed breakaway of the cloud for a good positioning.
Commentary: Declining trend. Breakaway of a diagonal resistance and ex-horizontal structural resistance - now support. Price is above the Ichimoku cloud and is forming an engulfing bullish bar - positive signal. We wait for a slight correction to go long. For the more conservative traders - we wait for a close at 12:00 and position ourselves long after a test of the breakaway.
Stop Loss: 0.6925
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