1. Crated a good pattern with 3 touches on the top and reacted to the third touch strongly and now on a pullback to continue the downtrend.
2. Broke the trend line.
3. Also created a W pattern with last leg exploding to the upside.
4. Will look for entering on 1 hour and touch of 78.6 FIB.
KEY LEVELS FOR NZD/CAD
0.96000 – 0.83000
Confluences -
1. Double top created at FIB 61.8
2. Broke the trend line. Using the FIB from the previous leg high to the low, we will look for a tap of 61.6 or 50 entrancement.
3. Below we can see M pattern being created.
Confluences -
1. First high - 1.635 so second LH mostly 1.6300 (50 PIPS BELOW) and the third LH 1.62500.
2. Already made one lower high and lower low.
3. Touched 0.786 fib now going to touch 0.618
4. Weekly huge bearish red candle on the top.
Confluences :
> Strong Zone 75.500
> Market bounced off the zone twice in two weeks and the second touch is around 25-30 pips higher than the previous low.
> Possible W formation.
> Bounced off FIB 78.6%
