Trading opportunity on currency pair: NZD/CAD rate has neared the trend line. According to the double top there’s the likelihood that the trend line will be broken. If the sellers are not able to strengthen below 0.8610, the NZD will take the rate southbound to 0.7946. This target is expected to be achieved by the end of the year. Minus the New Zealand dollar sales against the Canadian: a negative swap (-6.92 dollars per lot). If there’s a rebound it’ll be more worthwhile buying NZD.
Today all of my ideas are on the Canadian dollar. It just happened that the crosses are at important price levels. The Canadian could either see a growth throughout the market or could recoil.
The AUD/CAD has edged closer to an important support. For the last two weeks, the GBP/CAD weekly candles have been reverse. The NZD/CAD has stopped by the trend on the weekly.
At the moment on the weekly there’s a double peak coming off (H0,9649 and H0,9614). A confirmation of this pattern will come from a break in the trend line and a strengthening below the 0.8610 marker. The trend line will take its beginnings from February 2009. If the sellers are able to fulfill these two conditions, the NZD will take the rate southbound to 0.7946. The New Zealander has been falling from 0.9614 for 10 weeks. If a recoil follows, a W-form pattern or a triangle could take shape.
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