FX:NZDCAD New Zealand Dollar/Canadian Dollar
NZDCAD has successfully broken its downtrend line which started some time in March this year. There is not much to say except that it would be prudent to wait to see if it can also clear overhead resistance before entering on the long side here. The pair should find support in case it pulls back on the 38.2% Fibo-Retracement level. There is enough profit potential so that there is no real hurry to take unwise positions ahead of the weekend. Yes, a Head-and-Shoulder formationen is visible and the falling neckline has also been broken. Blue lines represent this formation that is a double shoulder on both sides with a clear head in the middle. Should be explosive. As can be seen by the measurement of this formation there is lots of potential. Even if this Head and Shoulder does not reach its potential the break over the resistance mentioned before should lead the way to the target to reach the last high 0.8443. Options how to play it: aggressive players might take it right here but more smarter would be to wait for monday to see the situation after the weekend and then enter on the break of resistance at .082300. I place a buystop at this level on Monday morning.