I'm eyeing a potential short trade on the
NZDCAD
pair after a strong bullish run. The price is currently hovering below a significant resistance level marked at 0.83780, with a noteworthy retracement level at 0.83464 (indicated by the gold line) which I am considering for my entry point. The MFI indicator suggests a bearish money flow despite being above 50, hinting at possible downward momentum.
Trade Details:
Entry Point: Just below the 0.83464 Fibonacci retracement level
Stop Loss Zone: Above 0.83780 (top grey box), to mitigate risk in case of an upward breakout
Take Profit Area: At 0.82514 (bottom grey box), where the previous low sits, expecting the price to fill the gap
The market structure shows a high probability for a pullback, with FVGs (Fair Value Gaps) possibly acting as pullback zones. The strategy here is to capitalize on the anticipated retracement after the price failed to break the previous high, with the MFI's bearish divergence supporting this view.
NZDCAD
pair after a strong bullish run. The price is currently hovering below a significant resistance level marked at 0.83780, with a noteworthy retracement level at 0.83464 (indicated by the gold line) which I am considering for my entry point. The MFI indicator suggests a bearish money flow despite being above 50, hinting at possible downward momentum. Trade Details:
Entry Point: Just below the 0.83464 Fibonacci retracement level
Stop Loss Zone: Above 0.83780 (top grey box), to mitigate risk in case of an upward breakout
Take Profit Area: At 0.82514 (bottom grey box), where the previous low sits, expecting the price to fill the gap
The market structure shows a high probability for a pullback, with FVGs (Fair Value Gaps) possibly acting as pullback zones. The strategy here is to capitalize on the anticipated retracement after the price failed to break the previous high, with the MFI's bearish divergence supporting this view.