NZDCAD Poised for Breakout (450+ pips)
What an ugly chart! I'm still waiting for a few ideas to hit their particular orders - and this is one of them. What we have here is a descending channel within a larger ascending channel. These are particularly great because you know for a fact that it's either going to bounce off the channel wall and push up or break the channel for a huge dive.
As always, I like to play the odds so I'm going with the former. The price has already bounced off the wall but I'm still waiting for it to break the descending channel, because it still has the opportunity to go back down and bounce up again like we saw in May 2015. If it breaks we can expect it to hit 3 targets, the first of which is supported by the 0.236 fib retracement (which it's been adhering to judging by the 0.382 level as well). The second and third are very strong S&R levels that have been hit multiple times over the past few years. The question then becomes: What happens if it goes past Target 3? The high that we saw in November 2016 is an all-time high, so passing it means we'd be in uncharted territory. We can assume that the price will at least test a new high at that point - even if it might not break through.
Setup
Entry: 0.93726
TP: 0.94418, 0.95654, 0.96321
SL: 0.93305 or 0.92415 if you're confident in the double bounce.
Always be sure to take the necessary precautions when trading!
As always, I like to play the odds so I'm going with the former. The price has already bounced off the wall but I'm still waiting for it to break the descending channel, because it still has the opportunity to go back down and bounce up again like we saw in May 2015. If it breaks we can expect it to hit 3 targets, the first of which is supported by the 0.236 fib retracement (which it's been adhering to judging by the 0.382 level as well). The second and third are very strong S&R levels that have been hit multiple times over the past few years. The question then becomes: What happens if it goes past Target 3? The high that we saw in November 2016 is an all-time high, so passing it means we'd be in uncharted territory. We can assume that the price will at least test a new high at that point - even if it might not break through.
Setup
Entry: 0.93726
TP: 0.94418, 0.95654, 0.96321
SL: 0.93305 or 0.92415 if you're confident in the double bounce.
Always be sure to take the necessary precautions when trading!
Trade active
Comment:
Target 1 reached; Consolidation expected here.
Comment:
Target 2 area reached; More consolidation expected
Trade closed: target reached:
Target 3 reached; Breakout complete