US500: A further correction towards 5192 before resuming purchases.
Bearish Scenario: Sales below 5220... Bullish Scenario: Buys above 5225 (if price fails to break below decisively) ...
NZD/CAD: another end of a channel?
2020-06-26 • Updated
If we look purely technically at NZD/CAD, here is what we will see.
Throughout the entire May, with the exception of a dropdown during the third week of the month, the currency pair was moving sideways. Its movement was contained within the channel supported by 0.8482 and capped by 0.8560 from the upside. Closer to the end of the month, NZD/CAD made a surge above the channel’s upper border at point A. After that, it bounced down, stayed at the upper border again, bounced down again, and broke the channel to establish itself at a higher baseline level.
Eventually, it is now in a new sideways channel since the beginning of June: the lower border is at 0.8717, the upper border is at 0.8790. Now, just recently NZD/CAD inched above the resistance of the channel at point B, bounced down, and currently is in consolidation at the upper border. If it follows the same pattern it formed in May, we are going to expect some more consolidation right below 0.8790, then a bounce down, and eventually a sharp rise to a new baseline level.
Important: following the pattern doesn’t necessarily mean copying it. Probably, it would even be unwise to expect exactly the same behavior from NZD/CAD as in the previous month. For this reason, what we are to expect is a shift that will push the price out of the month-long sideways channel. It may be a bullish move to a higher base like at the beginning of June, it may be the opposite, in fact, or it may be just an end of the sideways pattern. So the first thing to prepare for is the end of the sideways channel. After that, market sentiment and fundamentals will tell how exactly it will end and what may come next.
In the short term, though, expect consolidation at the resistance level and a bounce back. If that fulfills, let’s get back to the currency pair and refresh the outlook.
Similar
US30 Trading Strategy and Key Levels: Where Are the Supply and Demand Zones?
Bearish Scenario: Sell below 39600... Anticipated Bullish Scenario: Intraday buys above 39750... Bullish Scenario after Retracement: Intraday buys above 39150
US100: Consolidated and preparing correction below 18100. Key levels on H4!
Bearish scenario: Shorts below 18100 with TP1: 17900... Anticipated bullish scenario: Intraday Longs above 18130 with TP...
Latest news
USD: Powell Speaks on Cutting Interest Rates
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
WTT: Currency Pairs To Trade In April
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
EURUSD: Seeking liquidity in weekly selling zones. Key intraday levels.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
