Hammer Touching Support on NZDCHF

Hammer off support is my all-time favorite technical pattern, and I see something like that emerging on NZDCHF. Ideally, the wick is fully below support; in this instance, the bottom of the wick is touching support, so it is not the best hammer off support pattern out there. However, I still find it to be adequate and worth the risk. My stop is 40 pips below my entry, which also puts it below the 50 SMA. My target is the recent all-time high at 7750, which gives me a reward/risk of greater than 3:1.

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