NZDCAD: 3 POSSIBLE SCENARIOS
SCENARIO 1:
Last time we hit 0.960 was in March of 2014. The downside move had massive follow-through. However this time around we hit 0.960 and had little follow-through respecting the ascending trendline as support once again and price looks as if it wants to test 0.960 once more. A strong psychological level of 0.960 acting as resistance paired with the Dec. 2014 trendline is forming somewhat of a steep ascending triangle 'squeezing' price. This pattern usually results in a break to the upside.
SCENARIO 2:
On the other hand, we can look for shorts if this pair rejects 0.960, breaks the 2014 ascending trendline support and retests the underside as resistance with a high-test candle(s) showing a rejection of higher prices. Even in this scenario I wouldn't take a short due to my personal bias remaining bullish due to the overall long term bullish trend.
SCENARIO 3:
Upon scenario 2 unfolding we could still be in an even bigger ascending triangle pattern from the 2011 trendline support (the red zigzag lines)
Good luck, traders!
Last time we hit 0.960 was in March of 2014. The downside move had massive follow-through. However this time around we hit 0.960 and had little follow-through respecting the ascending trendline as support once again and price looks as if it wants to test 0.960 once more. A strong psychological level of 0.960 acting as resistance paired with the Dec. 2014 trendline is forming somewhat of a steep ascending triangle 'squeezing' price. This pattern usually results in a break to the upside.
SCENARIO 2:
On the other hand, we can look for shorts if this pair rejects 0.960, breaks the 2014 ascending trendline support and retests the underside as resistance with a high-test candle(s) showing a rejection of higher prices. Even in this scenario I wouldn't take a short due to my personal bias remaining bullish due to the overall long term bullish trend.
SCENARIO 3:
Upon scenario 2 unfolding we could still be in an even bigger ascending triangle pattern from the 2011 trendline support (the red zigzag lines)
Good luck, traders!
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