We found some interesting moves on the NZDCAD pair earlier this week. A clear Head and Shoulders formation that is looking to complete on the Daily chart accompanied by a strong RSI Divergence signal got our attention, and this is the idea on analysis today.
We are at the 0.96100's region facing a really strong resistance that was solidly broken only once, on the Head move of the price and a Long Term trend line was broken and being tested as resistance.
We will be monitoring the price action as the days will go by, but, our feeling is going short as soon as we find additional confirmation and/or indications of a clean break-out of the 0.93020 price tag.
Theory suggests the expected performance of the H&S formation (neckline to Top of head) to be around 624pips (!!!) so when applied, it falls right around another strong/serious previous structure level (0.86780) which makes us pretty confident that we can achieve it.
Our suggestion for entry points TP and SL are listed below, we recommend to suit to your style and/or further analysis.
Entry Price: 0.93020 Take Profit: 0.86779 Stop Loss: 0.95764
Let's wait it out... All comments and feedback is highly appreciated