NZDCAD - SHORT ENTRY
Uppdaterad
NZDCAD is in a downtrend (as we can observe, it creates lower lows and lower highs).
The price broke the mid-term support zone (0.86160 - 0.86400) and created a lower low after which the price retraced from this impulse down to support turned resistance (0.86160 - 0.86400).
This retracement coincides with 61.8% FIB level, which serves as another confirmation of a potential move down.
As of now, the price shows an indecision by consolidating (easier to observe on 1H timeframe of lower).
A logical place to enter the trade would be to wait until the price breaks down from that consolidation support (0.86205), creates a new short term LL and retests the 0.86205 level.
Stop loss could be placed slightly above the next FIB level 78.6, with the target profit at 0.84160 level, which has served as a strong support level in the past (although you could target the most recent lows, -27.2% or -61.8% of the FIB, which are more risky TP levels).
The price broke the mid-term support zone (0.86160 - 0.86400) and created a lower low after which the price retraced from this impulse down to support turned resistance (0.86160 - 0.86400).
This retracement coincides with 61.8% FIB level, which serves as another confirmation of a potential move down.
As of now, the price shows an indecision by consolidating (easier to observe on 1H timeframe of lower).
A logical place to enter the trade would be to wait until the price breaks down from that consolidation support (0.86205), creates a new short term LL and retests the 0.86205 level.
Stop loss could be placed slightly above the next FIB level 78.6, with the target profit at 0.84160 level, which has served as a strong support level in the past (although you could target the most recent lows, -27.2% or -61.8% of the FIB, which are more risky TP levels).
Handel aktiv
FIB levels were incorrectly drawn for some strange reason. They should be drawn from last swing's top high to low. However, it's still a rejection from that level.
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