Here i explain why we can see a move to the downside for NZDCAD and how we could see a move to 0.90700 and if wee keep up this momentum we see NZDCAD drop even further to reach 0.90000.
Leave a comment if you agree, disagree or have any questions :)
Price brokeout above the downtrend resistance and is currently printing a rising WEDGE + RSI bearish divergence signal. Breakout below wedge support could lead to retest of downtrend resistance + key fibonacci retracement levels ⬇️.
- Closed above a key level (indicating a good level of support).
- Recently created a HIGHER LOW.
- Dragonfly & Bullish Engulfing formed over the last few days.
- 20 EMA just below price.
(High impact AUD news tomorrow may have close correlation with NZD price action)
NZDCAD might be giving a morning star candle formation. Waiting for the close of the present 4 hour candle before making the decision to enter a long position, or not. TP=0.89373, Risk to reward is about 1:4
As you can see, last week price closed strongly above a key reversal zone at around 0.87626 indicating it could be ready to push up further towards the 0.78 Fib level before we see that big swing lower we have been waiting for. Due to the strength this pair is showing me i am attempting to catch the continuation of the momentum up towards the descending trendline...
Been active on this trade for a week or so now, CAD should be coming back into action from late recovery from the virus. Did not break support at 0.87991 which gives me more urge to sell.
Aways using good risk/reward ratio.
Price has reached a very strong resistance level at 0.87940 which lines up with the 0.61 level on the fib indicating a possible change of trend. My setup became valid when the daily candle closed strongly bearish at this important level. Therefore I am anticipating a swing low.
Entry : 0.87313
SL : 0.88370 (105Pips)
TP1: 0.84500 (270Pips)
TP2 : 0.8060...
