NZDCAD - Uptrend to Downtrend?

24 thg 3, 2023

Hi,

Little while since my last fx post!

Here we see NZDCAD has followed an up trend from the 28th of Feb until the 20th March. We can see this as it has continually formed higher highs and higher lows through "Channel A"

I have been trading on these areas, however when a new lower low formed, this signalled that the uptrend had run its course.

The new lower high on the 23rd March was formed, it confirmed a downtrend was beginning. I placed a trend line across the latest higher and lower high to help create an idea of the channel it will follow. This is "Channel B"

Alternatively it may still hit the level of resistance as the previous lower Low did. This could mean it would follow through to channel C with little movement through where A and B cross.

The trade set up on the chart isn't a trade I have placed, it just gives an idea. Once confirmed, I will start trading on the movement!

This is just my own idea, nothing is black and white. Let me know what you think

Thanks