NZDCAD, if You do not want to trade the USD today…

Today, all eyes are on Jerome Powell and his first big speech as a new FED Chairman. If You want attractions, feel free to enter any trade with the USD. If You try to avoid risk and excess volatility, maybe you should aim for other, more exotic instruments.

We have that covered. Currently, we see a nice setup on the NZDCAD, where we have high chances for a mid-term bearish movement. Why do we think that the price in the next few hours/days should go down? First of all, trendline. Yes, it is bullish but the price did not test it yet. Should the price do that? Well, it would be desirable movement, especially that we can see a beautiful correction equality pattern. That grey rectangles are around 170 pips. Three corrections that we saw so far had this amount of pips. The current one, less than 150. In other words, we see a big chance for the recent mid-term bearish correction to continue. Apart from that, we also have the 50% Fibonacci here, which also can be a big gravity source for the price.

In the long-term, the sentiment is still definitively bullish. The price touching the support around the 0.919 can be a great buying opportunity. Exactly, can be..so first, we need to get there and that is where we see a nice short/mid-term trading opportunity. That being said, our current view on this pair is bearish.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis