Trade of The Day – NZD/CAD

Facts: 
Short term sentiment remains downward from the beginning of February
The price reacted to the upper limit of 1:1 structure at 0.8065

Recommendation: 
Trade: Short NZDCAD at market price
Target: 0.7954, 0.7904
Stop: 0.8080

Opinion:Looking at the NZDCAD chart from the H4 interval, we can see that the price bounced off the key resistance.The area near 0.8065 is marked with the upper limit of 1:1 structure and 38.2% Fibonacci retracement of the downward move started on February 3. In addition the price sits below the 100-period moving average (H4 interval). According to the classic technical analysis and Overbalance methodology, the further downward move looks to be the base case scenario. We recommend going short NZDCAD at market price with two targets: 0.7954 and 0.7904. We also recommend placing stop loss at 0.8080. Source: xStation5