Since 1,5 months there was uptrend rally at NZDCAD. In this period price gain almost 1000 pips without any bigger correction. Even at last days when we saw lowest volatility at the market (which was caused by Holidays period) 9-months high was achieved. NZDCAD is already overbought and correction may start at any time. Yesterday’s daily candle closed below open level. It is a PIN BAR candle (with big body) after it tested an important resistance. Right now there are two scenarios:
- after correction price will return to uptrend and resistance will be break above
- after shallow rebound demand will try to attack on resistance again. It couldn’t be so easy and after some downward formation like double top rebound should be deepened (or even the trend may be reversed).
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