Facts:
NZDCAD has been trading in a downward trend from the end of October
The pair bounced off the key horizontal resistance at 0.7995
Recommendation:
Trade: Short position on NZDCAD at market price
Target: 0.7953, 0.7932
Stop: 0.8005
Opinion: NZDUSD has been trading in a downward trend recently. However, local upward correction started this week. Looking at the H4 time frame, one can spot that the price reached the key resistance area. Price reacted to the horizontal resistance area near 0.7995, which results from previous price reactions as well as the upper limit of 1:1 structure. According to the Overbalance methodology, as long as the price sits below, the downward movement should resume. We recommend going short NZDCAD at market price with two targets: 0.7953, 0.7932. We also recommend placing a stop loss order at 0.8005. Source: xStation5
