NZDCAD - Trend Continuation
Good evening Traders,
We have an interesting Setup here: Please read fully.
NZDCAD Weekly
With the New-Zealand Dollar losing Momentum, we can expect the ZXY to be bearish in the next weeks. The Canadian Dollar has shown tremendous resilience since March 2020 and despite a rough last few days, the CXY is still very Bullish. A depreciating NZD versus an appreciating CAD should result in good swing trade opportunities with minimal risk exposure.
On a technical aspect, this parallel channel which has been valid since November 2016 is still pushing the overall trend down. In addition to the double rejection of a 61.8 FIB retracement level, the rejection of the 200 EMA, a solid key area and the rejection of the top of that parallel channel, I expect NZDCAD to continue its momentum and create a new bearish leg.
Do note that tomorrow, we have the Bank of Canada's Interest Rate decision and the result may translate into a volatile CAD. Trade carefully.
I will personally wait for the Interest rate as well as the consequent speech to enter.
Feel free to comment below or send me a message.
Richard
We have an interesting Setup here: Please read fully.
NZDCAD Weekly
With the New-Zealand Dollar losing Momentum, we can expect the ZXY to be bearish in the next weeks. The Canadian Dollar has shown tremendous resilience since March 2020 and despite a rough last few days, the CXY is still very Bullish. A depreciating NZD versus an appreciating CAD should result in good swing trade opportunities with minimal risk exposure.
On a technical aspect, this parallel channel which has been valid since November 2016 is still pushing the overall trend down. In addition to the double rejection of a 61.8 FIB retracement level, the rejection of the 200 EMA, a solid key area and the rejection of the top of that parallel channel, I expect NZDCAD to continue its momentum and create a new bearish leg.
Do note that tomorrow, we have the Bank of Canada's Interest Rate decision and the result may translate into a volatile CAD. Trade carefully.
I will personally wait for the Interest rate as well as the consequent speech to enter.
Feel free to comment below or send me a message.
Richard
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