USD/CAD has made an immense move to the downside on Tuesday falling by about 200 pips.
NZD/USD: a “Shark” pattern
BUY 0.6860; TP1 0.6955; TP2 0.6970; SL 0.6840
SELL 0.7000; TP 0.6920; SL 0.7020
NZD/USD rose to the highest levels since the start of December. It rose above 78.6% Fibo of the December-January decline at 0.6890. As a result, there are all prerequisites for the pair to form a “Shark” pattern. The pattern implies further advance of the NZD/USD before it makes a sizeable correction. At the same time, it’s worth noticing that the pair will soon meet resistance of the weekly MAs at 0.6955 and 0.7000, so the way up won’t be easy.
The trade idea is to buy NZD/USD on the pullback to 0.6850 and sell around 0.70, although you may think of other ideas within this framework.
Last week NZD/USD once again met resistance in the 0.6155 area. As you can see from the chart, this area stopped the pair twice before within the recent month.
It’s worth paying attention to AUD/JPY. The pair has approached the resistance line connecting April and May highs.
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