NZD/USD Butterfly; 1.272 potential sell
Updated
Hello guys; Today I will talk about NZD/USD. We have a potential "butterfly 1.272 sell". If you look at the hourly chart, you can see that a possible turning point (down) could be an extension of the ABCD pattern at 1.272; That level coincides with the weekly pivot resistance; when we talk about the butterfly pattern, we know that the turning point could be at 1.272 or 1.618 extension, but according to the speed of the CD leg (which shows very heavy price action, and no acceleration to 1.272) we could assume that this butterfly could stop at 1.272 extension.
Note
NZD/USD did not stop at 1.272 extensions, so I guess the next destination could be 1,618 extensions. So if I see any bearish pattern, I’ll go short. The pair is exactly at this level and if it fails to go lower then the butterfly will also fail and in that case the pair will show a strong intention to move higher. In both cases, we will get some important information about future moves.
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