- September 28, 2022
- Posted by: Tradingshot Articles
- Category: Forex
The NZDCAD pair has been following a very specific trading pattern which we have outlined since June and has given us excellent trades:
As you see the key here is a recurring bearish sequence within this Channel Down. As long as the 1D MA50 (blue trend-line) is intact as the Resistance, expect Lower Lows within the Channel. Right now, with the 1D RSI breaching the 30.000 oversold barrier and rebounding, we expect at least a short-term rise, as it happened with all 4 other occurrences since March 24 2021. The target is slightly lower than the 1D MA50.
If the 1D MA50 breaks, we will consider this a bullish break-out signal targeting the top of the Channel Down and the 1D MA200 (orange trend-line).