NZD/CAD breaks major supports, stay short for 0.93NZD/CAD trades with a strong bearish bias, scope for test of 78.6% Fib at 0.9297.
The pair has broken below major trendline support at 0.95 levels last week.
Decisive break below major 200-DMA support at 0.9562 on Tuesday's trade has added to downside bias.
Momentum studies are heavily bearish, RSI extremely weak at 36 and biased lower.
MACD also support downtrend. However, stochs are at oversold levels, so some caution advised.
Weekly charts are also heavily bearish, with break below weekly 20-SMA at 0.9442.
Support levels - 0.9395 (61.8% Fib retrace of 0.9171 to 0.9758 rally), 0.9386 (cloud base), 0.9297 (78.6% Fib)
Resistance levels - 0.9449 (5-DMA), 0.9460 (200-DMA), 0.95
Good to go short on rallies around 0.94/ 0.9410 levels, SL: 0.9460, TP: 0.9325/ 0.93/ 0.92
Nzd-cad
NZD/CAD short setupNZD/CAD has shown a break below major trendline support at 0.9370, bias lower.
Recovery attempts in the pair were rejected at 200-DMA and Technical indicators support downside.
Upside on the day remains capped below 5-DMA and stiff resistance also seen at 50-DMA at 0.9382.
We see scope for test of 0.9317 (Apr 27 low). Further weakness will drag the pair lower to 0.9175 (trendline).
Bearish divergence on RSI and Stochs adds to downside bias. Bearish invalidation on close above 200-DMA at 0.9448.
Support levels - 0.9318 (Apr 27 low), 0.9278 (Mar 31 low), 0.9175 (trendline)
Resistance levels - 0.9382 (50-MA), 0.9388 (5-DMA), 0.9412 (cloud top)
Good to go short on close below trendline at 0.9370, SL: 0.9415, TP: 0.9320/ 0.9275/ 0.92
NZDCAD Awesome Bearish SetupOn NZDCAD we have an awesome bearish setup. The price is heading towards the 14 and 72 EMA and the lower range while the Stoch RSI shows alot of selling pressure and the Adx shows a strong bearish trend.
This leads to the conclusion that NZDCAD is heading for a further drop!
Take profit: 0.92800
Stop loss: 0.95200
NZDCAD | GWAVES DETECTED | TARGET AREA DEFINEDHello Traders,
A Gwave has been detected in NZDCAD. Based on the magnitude and force of the Gwave the final destination is highlighted in green. I have also highlighted important levels of Support and Resistance using the Gwave model. The soonest we will hit the Target area will be around June 8th. Pay attention to how price responds to the levels highlighted in this chart.
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Best,
Sirak
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