NZDCAD update - reversal possibility

Morning Dynamic Traders

I mentioned this pair last week as we have the H&S chart pattern. Since then price has done a pullback and attempted a retest of the neckline. Price is at a critical point now. It's hugging the S/R line and seems to be deciding it's course of action. The intimidating VI is creeping up slowly and inevitably price will react one way or another once they meet. With the H&S, ST now forming a false bar at the bottom and other confluences mentioned last week, a possible reversal could take place.
















To enter on a reversal I'm awaiting a BOB of the VI and next support as this is likely to minimise the chances of any FBO's. Price could also fail the H&S pattern and return to it's uptrend. Patience and confirmation is what's needed now for either trade.

Great trading!
Sonia Molina

NZDCAD H&S

Good Afternoon Dynamic Traders

I hope you all enjoyed your weekend and are gearing up for the festive season. It will be interesting to see how the markets behave this coming month.

The NZDCAD daily chart is showing us a H&S formation. Some of the more experienced or aggressive traders, may well have entered this trade on the BOB of the neckline and gained some profits - which of course would have been against the current up trend. The chart is at quite an interesting point now. Price has also broken and closed below the S/R level. MACD is showing strength in the down move and we also had previous divergence. So signals are suggesting price may well continue down.

But we have this support cluster very close below so a down move may be short lived. A possible trend trading opportunity may arise should price find support at this VI, RN, Fib level and continue up to recommence the trend. Alternatively, price may break in which case an opportunity to short maybe on the cards.
















Expect some volatility this week with NFP news and as always please carry out your own analysis.

Great trading!
Sonia Molina