NZDCAD Trend Continuation - 1.78282 ForecastOpportunity Range - Short from 0.80500 to 0.78282
- ATR is compressing and we are approaching holiday periods, expecting less activity and less volume, therefore we are less likely to see a reversal or a large counter trend play so expecting trend to continue and market to continue in the path of least resistance.
- We have pulled back into supply area, potentially picking up more seller to continue price lower.
- we have taken liquidity above a minor lower high in the process, this could add fuel to the trend continuation.
- We are failing to see acceptance above a key psychological level of 0.80000 with clear wicks rejecting the level on the weekly chart
- We had a large move high in April which did not break structure, as ATR has been compressing since, there is a likely chance we can take liquidity under these lows as we have had a dramatic failed expansion.
- NZD is currently in a rate cute cycle whilst CAD is now starting to hold. This project more relative weakness for NZD over CAD.
