NZDCAD | Perspective for the new weekThe dailly chart (see below) suggest that the Bears continue to take control of the prevailing direction of price action despite the 100pips Bullish run during last week trading session; I noticed that price has been caught within a Descending Channel since the beginning of the month with structures that support the tendency of respecting this Channel and even breaking it further down in the nearest future.
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Trendline | Channel | Harmonic (AB=CD)
Observation: i. TRENDLINE: The line drawn over pivot highs (indicated on the chart as Pivot I, II & III) appears to be a visual representation detailing the prevailing direction of price action over a period of 2 weeks.
ii. The handing over of the baton from Buyers to Sellers on the 12th of May 2021 is represented on the chart with a successful Breakdown of Demand zone which held price "supported" for 11days.
iii. It is observed that last week session was characterized with emphatic Bearish and Bullish run (a correction of AB leg).
iv. If we also look closely, a Breakdown of Descending Channel @ CA$0.87000 last week appears to be a clue that participants are anticipating the risk of further decline for the Kiwi.
v. In this regard, I predict an ABCD pattern transition with expected parameters explained below;
a. Leg A-to-B appears to be in harmony with the C-to-D leg.
b. The B- to-C leg falls within 61.8/78.6% Fibonacci retracement of the A-to-B leg.
c. The C-to-D leg is expected to fall within 127.2 - 1.414% Fib. ext of the A-to-B move @ CA$0.86000 area.
vi. For me, Below the Key level @ CA$0.87750 shall be a yardstick for sell confirmation in the coming week as price action is been monitored... Trade consciously! :)
Trading plan: SELL confirmation with a minimum potential profit of 180 pips.
Risk/Reward : 1:6
Potential Duration: 2 to 6 days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
