NZD/CAD - Downside Correction Likely
Updated
Hi traders, just posting a quick analysis whilst I am passing through.
Here we have NZD/CAD on the 2H chart.
Price recently had a strong up move, stalling at a historical resistance zone. From here there has been multiple reversal candles at the zone and I am now expecting a down move to begin to the downside.
I am expecting a correction to either the horizontal support zone at 0.8810, or the sideways channel support at 0.8790 level, before there is any other up move.
This correction is definitely worth a trade as the correction is likely to be steep and the Risk to Reward is very easy find. In all trading scenarios I tested for this pair trade, I got at least 1:2.5 Risk To Reward.
Bare in mind that price might have a minor retest to the above resistance zone at 0.8905 before the down move begins.
I will be updating this analysis as it progresses.
Here we have NZD/CAD on the 2H chart.
Price recently had a strong up move, stalling at a historical resistance zone. From here there has been multiple reversal candles at the zone and I am now expecting a down move to begin to the downside.
I am expecting a correction to either the horizontal support zone at 0.8810, or the sideways channel support at 0.8790 level, before there is any other up move.
This correction is definitely worth a trade as the correction is likely to be steep and the Risk to Reward is very easy find. In all trading scenarios I tested for this pair trade, I got at least 1:2.5 Risk To Reward.
Bare in mind that price might have a minor retest to the above resistance zone at 0.8905 before the down move begins.
I will be updating this analysis as it progresses.
Note
Price has had a little pop to the upside since posting. I am expecting this pop to end within the resistance zone.If price goes any higher than 0.8950 then I will consider this trade null and void and will remove this trade from my current watch list.
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