Has anyone else noticed the NZD rising like crazy against CAD?
NZD/CAD is now testing a major resistance area after this week’s moves!
Let me show you the setup on the daily chart:
Forex trading NZD / CAD Planned by TV
July was a good month for NZD/CAD, with NZD/CAD up 340 pips since the beginning of the month.
Much of the action has occurred this week with NZD/CAD rising from the psychological handle of 0.8200 to test the significant 0.8400 area.
As you can see, .8400 is not too far from the R2 (.8420) of the pivot points as well as trend line resistance that has been in place since December 2022. The area is close to a possible bearish SMA crossover on the daily time frame!
The cherry on top of this sweet setup is a potential bearish divergence on the chart.
Do you think the NZD/CAD will be rejected at the trend line resistance?
You can sell at current levels or wait for bearish momentum before targeting earlier lows such as 0.8200 or .8050.
Before you sell the NZD/CAD like there is no tomorrow, you should know that the last two candles are unequivocally bullish. The bullish momentum of the NZD/CAD is still intact and it might try to breach the resistance area that we identified.
If you are one of the NZD/CAD bulls, you can also wait for a clear break above the trend line and then target prior inflection points like 0.8500 or .8550.
