NZDCAD – SELL – 3rd September 2020

NZDCAD – SELL – 3rd September 2020 (Closed)

Good afternoon team,

We are looking to take a short position on the NZDCAD due to a number of technical factors.

Technical Breakdown

NZDCAD Monthly Charts

Descending channel is providing resistance. August’s monthly candle opened and closed inside the month previous creating an inside bar, when found at resistance reversals can occur.

NZDCAD Daily Charts

There has been a shooting star/ inverted hammer candle at a key resistance zone suggesting sellers are stepping into the market.

NZDCAD 4 Hour Charts

There has been a trend line breakdown followed by a retest on the 1 hour time frame. There is also a potential head and shoulders formation in play on the shorter term time frames.

Trade Setup: SELL Market Execution, current price 0.8830, stop loss 0.8861 and take profit target 0.8780.

Stop loss: 31 pips

Take profit: 50 pips

 

Keep in mind…

NZDCAD 15 Min Charts

The NZDCAD could be setting up for a head and shoulders formation. The left shoulder line can be found at 0.8850 which is also the 23% fib retracement. If the market pushes higher towards that zone, that will be an optimal entry point for a second position. 

 

Trade Setup
SELL - Market Execution

Entry
0.8830

Take Profit
0.8780

Stop Loss
0.8861