Talking Points
NZDCAD outside reversal off key resistance shifts scalp bias lower
Bearish invalidation at today’s high
Event risk on tap this week
NZD/CAD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
NZDCAD posts outside daily reversal candle off key resistance 9035/50- bearish invalidation
Support objectives 8863, 8817/25 & 8600/13- Key support
Resistance breach targets objectives at 9134/47 & 9175
Daily RSI resistance trigger break- constructive
Momentum reversal ahead of 60 / break sub-50 would be bearish
RSI support trigger pending
Event Risk Ahead: Canadian Retail Sales & BoC Rate Decision & New Zealand CPI tomorrow and New Zealand Trade Balance on Thursday (ET)
NZD/CAD 30min Chart
Notes: The NZD/CAD is working on an outside day reversal candle off key resistance and near-term our focus is lower in the pair while below today’s high at 9050. Note that the pair is trading within the confines of an Andrew’s pitchfork off last week’s high and a break below the bisector line likely to fuel accelerated losses in the pair.
Bottom line: looking to sell rallies while below the weekly high with a break below Friday’s low adding further conviction on short-side exposure. A breach above 9050 invalidates our near-term bias with such a scenario eyeing subsequent topside objectives into the 200-day moving average around 9150. Caution is warranted heading into tomorrow’s event risk with the Bank of Canada interest rate decision likely to fuel added volaltility in CAD crosses. Follow the progress of trade setups like these and more throughout the trading week with DailyFX on Demand.
* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.
Key Threshold Grid
Entry/Exit Targets
Timeframe
Level
Technical Relevance
Resistance Target 1
30min
9006
Last Week’s High / Soft Resistance
Bearish Invalidation
Daily / 30min
9035/50
Wkly ORH / 1.618% Ext / 50% Retrace / R1 Monthly
Break Target 1
30min
9096
Soft Resistance / Pivot
Break Target 2
Daily / 30min
9134/47
50% & 61.8% Retracement(s)
Break Target 3
Daily / 30min
9175
61.8% Extension / ~May Low
Break Target 4
30min
9200
Soft Resistance / Pivot
Break Target 5
Daily / 30min
9250/57
2.618% & 61.8% Retracement(s)
Support Target 1
Daily / 30min
8943/46
23.6% & 38.2% Retracement(s)
Bullish Invalidation
30min
8883
38.2% Retracement
Break Target 1
30min
8863
Soft Support / December High
Break Target 2
Daily / 30min
8817/33
50% & 23.6% Retrace(s) / Central Pivot / Oct ORH
Break Target 3
30min
8780
61.8% Retracement
Break Target 4
30min
8707
78.6% Retracement
Break Target 5
30min
8663
88.6% Retracement
Break Target 6
Daily / 30min
8630
Monthly Low1.732% Extension
Break Target7
Daily / 30min
8600/13
2014 Low / 61.8% Retracement
Average True Range
Daily (20)
101
Profit Targets 23-26pips
*ORH: Opening Range High
*ORL: Opening Range Low
Other Setups in Play:
EURCAD Hits Target- Long Scalps Eye 1.4457 Resistance
EURJPY Key Outside Reversal Shifts Near-term Focus Higher
NZDUSD Scalps Target Key Resistance at 0.8000
EURAUD Scalps Target 1.46- Breakout Levels Well Defined
GBPAUD Outside Reversal Favors Longs Scalps- 1.8440 Resistance
Scalping the AUDUSD Opening Range- Longs Favored Above 8660
EURUSD October Opening Range Setup- 1.27 Key Resistance
—Written by Michael Boutros, Currency Strategist with DailyFX
For updates on this scalp and more setups follow him on Twitter @MBForex
To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list
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Source: Daily fx
