Support and Resistance NZDCAD 270819

Bearishness is still seen in the structure, if it could pull back to red monthly significance level and show more signs of bearishness, then a sell would probably take it to the next monthly significance level. However, it could also range between the daily (green) and upper monthly (red) significance levels before heading down. Or if market is very bearish, it could move down strongly to the next monthly ( the TP level) quickly. (* Have to see how the structure forms from here. Not for a quick trade).

Comment:

Trading plan for when it reaches the towards monthly red level - As red level is also in confluence with Fib 1.618 of the 1st wave Expecting price to bounce off this level for a pullback. TP1 target at Fib 23.6 retracement for about 130 pips (if CAD is still strong) but lower R:R or TP2 at Fib 38.2 at about 200 pips for better R:R; relative to your risk appetite for your SL.

**Note that price could also spike/ditch way lower than last comparable low to create a bullish price action bar/bars, so if one is aggressive and takes a Buy Limit at the red level, one must be able to withstand the draw down if that happens. Those with low risk appetite should wait for a bullish PA before entering.

(*remember that resistance is a zone, not just a discrete number, last comparable low was 0.83222).

Trade closed: target reached:

Moderate Pips banked for this trade idea. Thank you for your eye time.

Linked trade idea (link below) for when the price moves to red line support is still active.