News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Gold
Bullish
GBP/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
More View more
Real Time News
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.09% 🇨🇭CHF: -0.02% 🇪🇺EUR: -0.04% 🇳🇿NZD: -0.34% 🇦🇺AUD: -0.35% 🇨🇦CAD: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/YDr8ENytVl
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.16% Wall Street: -0.23% US 500: -0.27% France 40: -0.48% Germany 30: -0.58% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/e9Gr3M5pOC
  • Heads Up:💶 ECB President Lagarde Speech due at 08:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-18
  • Heads Up:💶 Eurogroup Video Conference due at 08:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-18
  • Chinese Foreign Ministry: Noticed Report on US halting Huawei supply Urge US to withdraw wrong decision US Huawei move damaging internet supply chains - BBG
  • Canadian Dollar Outlook: USD/CAD Rebound May Continue Ahead of BoC - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2021/01/18/Canadian-Dollar-Outlook-USDCAD-Rebound-May-Continue-Ahead-of-BoC.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $CAD $USDCAD https://t.co/xfAI9M7wi0
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/cP7ZhDHoNA
  • Heads Up:🇨🇳 FDI (YTD) YoY (DEC) due at 07:00 GMT (15min) Previous: 6.3% https://www.dailyfx.com/economic-calendar#2021-01-18
  • Wall Street Futures Update: Dow Jones (-0.133%) S&P 500 (-0.193%) Nasdaq 100 (-0.184%) [delayed] -BBG
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/dPj0seqzQS
Entering Short NZD/CAD After Prior Checklist Has Been Met

Entering Short NZD/CAD After Prior Checklist Has Been Met

2018-04-24 04:00:00
Daniel Dubrovsky, Analyst

NZD/CAD Trading Strategy: Placed Order to Short at 0.9160

  • Checklist has been met after setting up the foundations of going short NZD/CAD
  • Prices are below optimal entry point, so an order has been placed to sell at 0.916
  • The stop will be a daily close above 0.92 while the target of this trade is 0.9080

Just getting started trading the New Zealand Dollar? See our beginners’ guide for FX traders to learn how you can apply this in your strategy!

In my previous analysis, I built the foundations of a fundamental argument to enter short NZD/CAD. However, we had a couple of critical event risks that needed to pass first. Those two were the Bank of Canada rate decision and a local inflation report. In the former, the central bank cooled near-term hawkish bets, but it’s still expected to overtake the RBNZ this year in terms of rates. The latter was a softer result that did much of the same.

On the chart below, we can see that the previous setup with the falling wedge bullish reversal pattern did not follow through as hoped. The upper line of the formation was left to represent resistance going forward. We have now also pushed below a key near-term support level around 0.92 which is the February 23rd low. Taking all of this into consideration, entering short now looks like a compelling argument.

However, at the time of this writing, prices are lower than the optimal entry point for a 2-to-1 risk-reward ratio. Thus, an entry will be placed to sell NZD/CAD at 0.9160 (green horizontal line on chart below). A stop will be placed on a daily close above 0.9200. The trade will target the 50% midpoint of the Fibonacci retracement at 0.9080. If the target will be met, all profits will be booked. If the fundamental landscape still looks appropriate for NZD/CAD afterwards, then we will look to re-enter short using a new setup.

Entering Short NZD/CAD After Prior Checklist Has Been Met

NZD/CAD Trading Resources:

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

To receive Daniel's analysis directly via email, please SIGN UP HERE

https://www.dailyfx.com/free_guide-tost.html?ref-author=Dubrovsky

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES