123 Reversal Setup on Kiwi NZDUSD 160916

How to trade this plan

1. Price reached the monthly target and then fell to MPP as expected
2. A double bottom was formed on WS1/ MPP and price has made a higher high
3. I am looking at the daily stochastic and might wait for the next oversold H4 stochastic – however H1 is approaching oversold. I will look at how price responds to support at H4 A and H4 B and then look at lower time frame charts for confirmation and an opportunity to go long
4. Notice how price is making similar setups on AUDUSD and USDCAD
5. Keep an eye on US CPI data coming out later today

Note:
a. Please read Kate’s post on Forex Major Currencies Outlook everyday so you are up to date with the latest news. You can follow Kate here
b. Please be aware of risk events for the day by using the Forex.Today calendar
c. Watch Wayne’s webinar daily at 13:30 SAST or catch the recording on the Forex.Today Youtube Channel

NZDUSD Daily

NZDUSD H4

NZDUSD H1

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