NZDUSD: WRMB fractals seen on the Weekly and Daily Charts
A pattern within a pattern is what is usually used to describe fractals. In NZDUSD, you can also see this happening as well.
WRMB forming on the Weekly charts
- Currently price has closed below previous year high and is assaulting the support of the high of year 2012.
- On the Daily charts, price has already closed below these two year highs (2013 & 2012), a close on the WK charts will reinforce this and give affirmation to the WRMB.
Same WRMB pattern showing up on D1 charts
- On the D1 charts, we see a similar pattern emerging with price perched at support.
- If price can close below the support zone, it would have done a WRMB of 5 months high.
- As this trade is on the D1 charts the SL would be large, one way is to fine tune the entry.
- Upon a close below the support zone (around 8420-30), look for any retracement to re-test the support zone turned resistance. This retracement is to be in the form of a 1234 pattern for entry
Added by Binni Ong
It is important for a D1 close below 8420-30. If this is achieved, then NZDUSD has a high chance to confirm the 1234 labelled below in chart. Next level S is 8300.