Good morning traders! Today we will analyze NZD/CAD as we detect a potential bullish trade. This situation is not ready since we are analyzing a high timeframe, but we want to be ready when the situation arises.
It is ALWAYS advisable to anticipate the price and state what we are looking for to plan the trade correctly and manage it in the best possible way. This makes us eliminate most of our emotions during the trade since we will have all the possible scenarios contemplated and assumed.
🔸Now we go to the technical aspect:
- In the weekly chart (posted on the idea), we see that the price broke a bearish channel that was active for approximately 5 years. Then, on the rise, it faced the resistance zone and from there began a corrective process.
- It is facing a strong support zone, formed by the broken trend line + a strong demand zone.
- Although it is an interesting level, we should wait for some confirmations for the situation to develop.
🔸We will expect the following:
- This is the daily chart, here we see the Descending Trendline of the current structure. What we are waiting for is a breakout + correction pattern. If this happens, we will pose a bullish trade after the correction breakout and look for a target towards the next resistance zone. In this way, we maximize the R/R ratio.
It is ALWAYS advisable to anticipate the price and state what we are looking for to plan the trade correctly and manage it in the best possible way. This makes us eliminate most of our emotions during the trade since we will have all the possible scenarios contemplated and assumed.
🔸Now we go to the technical aspect:
- In the weekly chart (posted on the idea), we see that the price broke a bearish channel that was active for approximately 5 years. Then, on the rise, it faced the resistance zone and from there began a corrective process.
- It is facing a strong support zone, formed by the broken trend line + a strong demand zone.
- Although it is an interesting level, we should wait for some confirmations for the situation to develop.
🔸We will expect the following:
- This is the daily chart, here we see the Descending Trendline of the current structure. What we are waiting for is a breakout + correction pattern. If this happens, we will pose a bullish trade after the correction breakout and look for a target towards the next resistance zone. In this way, we maximize the R/R ratio.