Very simple market structure here. The daily time frame shows the market in a bearish trend. With an impluse, a correction to the upside then continuation to the downside.
There has been 3 days of multiple rejections in the descending channel and has now created a bearish shooting star, suggesting a strong move towards the downside.
Watch the comments as I will...
As you can see we have upward trend with a series of higher highs and high lower being squeezed and forming a wedge.
Then price makes a lower low at 0.94990. This is a change in market structure, so we can assume price is now in a downward trend.
Price has then pulled back to a resistance area around 0.9025 to create a lower high giving more confirmation to a...
Overall I think we're still in for some selling pressure down to the 80.50 - 81.00 region.
We're seeing some really clean price action after a break of the 83.00 handle, with price making lower highs and lower lows.
The EMA Waves throughout the higher and lower timeframes are aligned.
If this does play out it'd form a 3 drives pattern, which I have seen...
Price is in a descending channel with price consolidating for a brief moment.
on the lower timeframe, price seems to have created basic support and resistance zones/levels which any trader can capitalise on. Waiting for breakout to confirm bearish bias.
- No major new highs since strong downtrend
- Retesting .72400 region
- False breakout may reverse price back into previous resistance
- May continue reversal from weekly downtrend at .73900
- Target 1: 0.71900
- Target 2: 0.71600
- Target 3: 0.70900
- Stoploss: 0.72350
In this market, I have seen the market do into this downward channel and with that came lower lows and lower highs. I've added the entry point, stop loss and take profit.
The lower lows and lower highs can be seen more clear in the 1hr timeframe and smaller.
Descending channel plus lower low to lower high are being made so this indicates bearish move and also bearish triangle pattern is also formed as well.
That is 3 indications that this CFD will go bearish.
Seeing some higher lows on both RSI and MACD, with lower lows with price action. Also resting on a 61.8 fib retracement. Could indicate we're headed for a small upwards run before carrying on the downtrend.
Obvious reasons why I'm short here... Fibonacci confluences, market structure, fundamentals for both countries at the moment, descending channel.
Just waiting for that retracement to get involved.
CHART ID: 10003
NZD/CAD 1H Chart: Channel Down
The New Zealand Dollar is losing value against the Canadian Dollar in a short-term descending channel, which started to form after the Kiwi appreciated by 0.9% just in one trading session.
In the beginning, the currency rate was moving quite sharply amid macroeconomic data releases and, for this reason, stayed indifferent...
This idea follows on from a previous trade I have with this pair. The idea is linked below. It was shorting on the basis of a channel formation, however the channel formation appears to be broken so a new analysis is being undertaken.
I am looking to short this pair. A small range looks likely to occur this week. I've highlighted this range area I am expecting...