USDCAD began the week slightly higher reaching as high as 1.2510 but failed to sustain these gains.
NZD/CAD broke support zone
2019-11-11 • Updated
- NZD/CAD broke support zone
- Next sell target - 0.9030
NZD/CAD recently broke the support zone lying between the support level 0.9190 (low of the previous minor correction 4 from February) and the 50% Fibonacci correction of the sharp upward impulse wave from the start of January. The breakout of this support zone accelerated the active minor impulse wave C. NZD/CAD is expected to fall toward the next sell target at the next round support level 0.9030 (low of the earlier waves (a) and (iv)).
All eyes are headed toward the Bank of Canada today. Estimates point to no change both for the main rate and the ongoing QE which stands at $3B weekly.
USD/CAD managed to advance further yesterday breaking above 1.21, reaching as high as 1.2128 earlier today, while our long signal that was issued at 1.2060 is now in profit with over +60 pips.
A comparative examination of the strength of the US-Dollar often gives tangible insight into the direction of Gold (XAUUSD). The chart above indicates the expectation of a bullish price reaction from the demand zone
The US Dollar has been remarkably sluggish for the past few weeks despite being within a distinct Demand zone. My expectation of a springing rebound off the demand zone has not exactly played out yet, however, the zone remains unbroken.
For those who may be unfamiliar with Price Action trading, the horizontal arrows represent areas where the market structure was broken. As you can see in the scenario above, price broke below the previous low at the two marked instances