NZDCAD- TRENDING PAIR TO WATCH
Welcome to this week’s newsletter!
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In this week’s newsletter we are going to identify a currency pair in trend and the key levels to watch going into the week ahead.
NZDCAD is going to be our chart of choice this week due to the strength and weakness meter.
As we can see from the chart above the NZD (yellow line) has started to move downwards showing the weakness of the currency and the CAD (green line) has been on a significant rise of late.
This has created a downtrend on the currency pair. This is perfect for us traders to take advantage of so let us look at the key levels.
NZDCAD Weekly Chart:
Looking at the weekly timeframe we can see that the market is currently in a long-term uptrend and we are trading the retracement of this phase. Using the volume profile, we can see that there is a large volume level at 0.8776. This is where buyers are likely to step back in and makes a great level to target for short opportunities.
NZDCAD Daily Chart:
Going down to the daily chart we can see the downtrend in more detail and see that the recent breakout of the trendline support has confirmed that downtrend. Now price is consolidating on the daily chart giving us an opportunity to short if the price were to break out of this zone.
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