NZD CAD Fib 50 Retracement
Updated
A Fib has been drawn from the last major swing. Price is now testing at the 50 level.
You will see price has a level of support from a minor trend line based off the previous two highs.
Divergence is evident on the one hour RSI
A Double bottom was loosely formed at the 50 level followed by breakout and retest. This is coupled with a trend line breakout and retest.
Risk Reward could be as high as 1:8 if price reaches the next descending trend line.
You will see price has a level of support from a minor trend line based off the previous two highs.
Divergence is evident on the one hour RSI
A Double bottom was loosely formed at the 50 level followed by breakout and retest. This is coupled with a trend line breakout and retest.
Risk Reward could be as high as 1:8 if price reaches the next descending trend line.
Note
Price pushed through the 50 level and had a rejection off the 61.8. There was no clear reversal candlesticks at the 50 line. (from now on I will only draw arrows of direction unless I am available to actively monitor and take the trade due to work commitments)
There is a Bullish inverted Hammer formed just after a rejection pin bar.
Some divergence is evidence.
61.8 Is a good point for reversal trading.
Note
Strong and clear rejection of the 61.8 level. Good bullish move.Trade prediction was good.
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