NZDCAD: Trend Reversal Signal

The price bounced from 0.89500 resistance zone. It tells us about a possible correction in the bullish market. Also, the price formed a bearish divergence, and it is a strong bearish signal as well.

We have a possible selling opportunity. If the price breaks the local uptrend line, it will be a sell signal. Stop orders for short trades must be placed above the resistance and the local swing high. Profit targets should be based on 0.88000 support and SMAs. Risk per trade must be no more than 1-2% from the capital.

In order to get a better entry point, we should sell as close to the resistance as possible. For this, we can wait for a possible upward movement to the resistance with further reversal. Also, use the hourly charts for a better entry.



Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.