Bullish Engulfing at AMA—Could We See a Bounce to 61.8%?

Aug 15, 2024

Bullish Engulfing at AMA—Could We See a Bounce to 61.8%?

After that steep drop in NZD/USD, it looks like the bulls might be waking up. We’ve just spotted a nice bullish engulfing pattern right at the AMA (Adaptive Moving Average), which usually hints that a bounce could be on the way.

If you’re into Fibonacci levels, you’ll notice that the 61.8% retracement level at 0.60454 is lining up as a sweet spot for a potential move up. This level often acts like a magnet, pulling prices back after a big move.

Thinking about getting in? A long position here could make sense, aiming for that 61.8% level. Just remember to keep it safe with a stop loss below the recent low, around the 23.6% level. That way, you’re balancing risk and reward pretty nicely.

This setup could be a good opportunity to catch a retracement after yesterday’s sell-off, especially with that bullish pattern giving us some confidence.

Aug 21, 2024

Trade closed: target reached

Good Run