Later this month, the BoC are expected to raise their interest rate from 1% to 1.25%- should this go ahead we should see a rise in demand for the Canadian Dollar.
Looking at the chart- price has broke strong weekly resistance, which has now turned to support. The Cypher pattern completes on the support level, where I believe price should rally if it hits this level. As always, I will be looking closely at the candlesticks for a valid entry- and keeping the risk:reward at a minimum 1:2.
RSI is also approaching the oversold level.
I am still holding my short position on th NZDCAD as i believe the cad will gain further strength.
Cypher ratios
X:B = 0.382-0.618
A:C = 1.272-1.414
X:D = 0.786
Looking at the chart- price has broke strong weekly resistance, which has now turned to support. The Cypher pattern completes on the support level, where I believe price should rally if it hits this level. As always, I will be looking closely at the candlesticks for a valid entry- and keeping the risk:reward at a minimum 1:2.
RSI is also approaching the oversold level.
I am still holding my short position on th NZDCAD as i believe the cad will gain further strength.
Cypher ratios
X:B = 0.382-0.618
A:C = 1.272-1.414
X:D = 0.786
Comment:
The support at which this pattern completes can be seen as strong weekly resistance which is now turning to support.
Trade active:
I am now in this trade, having entered with the formation of the hammer candle! (highlighted)
Comment:
Top-loss and TP-levels have not been adjusted. Although the entry point has altered, these stay the same!
Trade closed: stop reached:
Stop loss reached, with only 0.52% drawdown due to the adjustment of the the entry position once price passed the ideal reversal level.
