Daily Price Action

NZDCAD Technicals Point to 500 Pip Target


Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

Just yesterday I wrote about a potential NZDCAD selloff this week.

The pair had carved a bearish pin bar on the weekly time frame after failing to retake the 0.8870 level last week.

Furthermore, there was an ascending channel here that complimented the idea of an imminent breakdown.

If you look at the 4-hour chart, you’ll notice that NZDCAD cleared channel support before the weekend.

We were discussing this idea in the member’s area on Sunday.

One thing I pointed out to members is how the measured objective (if we treat this as a bearish flag) lines up with the 2018 low.

In fact, both are exactly 590 pips.

I’m referring to the year-to-date range. That’s from the high at 0.9281 and the low at 0.8691.

If we then subtract that same 590 pips from last week’s high at 0.8920, we get 0.8330, which is the closing price of the 2018 low.

See the chart below for an illustration.

It’s incredibly rare to find an objective of a potential flag pattern that lines up with a multi-year low with such precision.

So what does all of that mean for NZDCAD?

In my opinion, it means the pair is likely headed for the 2018 low (closing price) at 0.8330.

And as anticipated, sellers are off to a fast start this week.

As I wrote in yesterday’s weekly forecast, the first test for NZDCAD on the way down is the year-to-date low at 0.8690.

That’s also the inception point of this potential bearish flag.

A close below that would open the door to the next key support in the 0.8510/30 area.

Want to see how we’re trading NZDCAD? 

Click Here to join us and save 40% – Ends June 30th!

NZDCAD bearish flag pattern

Leave a Comment:

Justin Bennett says

Now you can get access to the same professional Forex charts I use!

Get access today: http://bit.ly/2UzPyiR

These charts give you five 24-hour sessions each week. They are essential if you trade from the daily or 4-hour time frames. Anything else can produce false buy and sell signals.

Download the platform here: http://bit.ly/2UzPyiR

DK says

Based on my rules, Im riding this trend. This is so called the “declining phase” in the 4 phases of a Market Cycle. And obviously this is the start of Declining Phase.

Morero says

I entered this pair last year around December on weekly charts I sold and I am in deep profit thanks Justin For sharing knowledge with us

Peter Igbokwe says

Thanks Justin

Collin Gonye says

Thanks Justin you’re absolutely precise.

edward lee says

Hi Justin thanks for this analysis. I took this trade and got out when it couldnt break 8700 as u did metion. Got 100 pips out of it

Add Your Reply