Interesting Bullish Cypher Forming On The Daily AUD/NZD Charts
An interesting series of events could be forming up on the Daily Chart of AUD/NZD.
Firstly, there is a Bullish Cypher Pattern forming up as price is pulling back to form point D at the 78.6% Fibonacci Retracement level of the XA leg. The requirements for a good Cypher pattern is as follows:
- The AB leg must retrace at least to the 38.2% Fibonacci retracement level of the XA leg. This one pulled back to 61.8%
- The Fibonacci extension of the XA leg must reach at least 127.2% and must not exceed 141.4%.
- The subsequent pullback after point C must reach the Fibonacci 78.6% retracement level of the XC leg to form Point D and the Potential Reversal Zone.
Secondly, there is a larger Bearish Gartley Pattern also forming on this pair. So far, it has already completed the XA and AB legs and is currently forming the BC leg which nicely coincides with the completion of the Bullish Cypher’s Point D.
This scenario presents the opportunity to long first based on the Bullish Cypher and then short later when the larger Bearish Gartley pattern completes (as shown by the red dashed arrows).
Happy Pip Hunting to All!