Today being a Friday, let’s concentrate on this pair. Remember last week even after a previous weekly bear candlestick, NZD gained massive ground against the CAD and our stops were hit. Today, we again revisit this pair with more confidence given the sync of our technical indicators and resistance lines.
On the daily chart, there is an overbought stochastics and a sell signal has already being printed. This is also forming at a strong resistance zone where the monthly and weekly resistance lines form a confluence. Also note, this is the fourth time price action is testing these levels in the weekly chart and that’s not all, there is an overbought stochastics with a sell signal printed some weeks back, so it is very significant for us.
Yesterday’s candle was bearish and it reversed at the 0.9580 zone after Wednesday candle closing like a morning star formation. This therefore means that there is a bearish momentum on the way.
Today, I will trade as follows taking trades from the 15 min chart:
Stop Loss: 0.9570
TP: Trail your profits
Have a good trading day and a nice weekend.