NZDCAD Downward Channel + Triangular Contraction April 22, 2017
Observation:
Price moves uptrend at a higher timeframe.
Price tested the middle line of the upward channel last Jan. 6, 2017.
Price again tested the middle line of the upward channel last April 12, 2017.
Price inside the upward channel makes a new small downward channel.
Price now again decides to test the dynamic resistance of the small downward channel.
Recently, price moves strong uptrend, breath at 0.93308, continue strong upward movement and stop at a significant Resistance level at 0.94780.
Analysis:
Price stop at the Dynamic Resistance of the Downward Channel.
Price would drop to next support level due to market contraction.
Conclusion:
Price has high probability to bounce and respect Dynamic Resistance of Triangular Contraction.
Price moves uptrend at a higher timeframe.
Price tested the middle line of the upward channel last Jan. 6, 2017.
Price again tested the middle line of the upward channel last April 12, 2017.
Price inside the upward channel makes a new small downward channel.
Price now again decides to test the dynamic resistance of the small downward channel.
Recently, price moves strong uptrend, breath at 0.93308, continue strong upward movement and stop at a significant Resistance level at 0.94780.
Analysis:
Price stop at the Dynamic Resistance of the Downward Channel.
Price would drop to next support level due to market contraction.
Conclusion:
Price has high probability to bounce and respect Dynamic Resistance of Triangular Contraction.
Trade closed: target reached