BlueberryMarkets

INVERSE HEAD & SHOULDERS _ NZDCAD

Long
FX:NZDCAD   New Zealand Dollar/Canadian Dollar
Currently NZDCAD looks to be setting up with an Inverse Head & Shoulders Pattern. Typically when you see this form at the bottom of a downtrend like we are seeing now, we see a shift in trend. We know from the Commitment of Trader reports that commercial long contracts are now at the highest we have seen in a very long time giving us a fundamental confluence with this currency. Seeing bullish pattern combined with this information can work effectively and efficiently. If we see the market pullback into the left shoulder support zone we could look for long trades. Be careful with this market in particular as Wednesday we have the Bank of Canada interest rate decision where they have already discussed the potential for a rate increase which may now be priced in.

Comments

Brilliant find!! Many thanks. I learned much from that.
+1 Reply
BlueberryMarkets Captain_Walker
@Captain_Walker, you're welcome! glad it has helped!
Reply