NZD/USD Bullish reversal setup and trade planDivergence Setup:
The RSI shows bullish divergence, where the price is making lower lows, but the RSI is making higher lows. This suggests a potential reversal to the upside.
Trendline Break:
A descending trendline has been drawn connecting lower highs (LH) and lower lows (LL) on the chart. The recent candle seems to be testing or breaking this trendline, which could signal a reversal if it holds above.
Entry:
A "Buy Limit" order is placed at 0.59820, just below the current price. This suggests waiting for a slight retracement for a better entry point.
Stop Loss:
The Stop Loss is set at 0.59498, below the recent low, aiming to protect the trade if the price moves against the setup.
Take Profit (TP):
TP1 at 0.60140, which is a conservative target.
TP2 at 0.60460, a higher target.
This trade plan is set up for a potential bullish reversal based on RSI divergence, trendline break, and Fibonacci retracement levels. The entry and take profit levels are positioned to capture gains if the price reverses upward, while the stop loss limits downside risk.
