Thank goodness I decided to be extra patient in waiting for more bearish momentum for this one instead of entering at market! If you’re wondering what I’m talking about, do check out my earlier NZD/CAD trade and my attempt at catching another move lower.
With all those top-tier events lined up from New Zealand earlier this week, I felt uneasy about entering at market so I thought I’d just wait for more market clues that another selloff to the bottom of the channel would take place. Because of that, I placed a sell stop order below the short-term triangle consolidation pattern to catch the drop if it happens…
… but it didn’t! As you can see from the 4-hour chart below, price eventually made an upside breakout from the triangle and the channel resistance. Phew! I sure avoided heartbreak on this one!
With this channel breakout, I’m now thinking of shifting my bias on this pair, at least from a technical standpoint. I’m not too sure about fundamentals just yet so maybe I’ll practice patience again and wait for more signs. Canada’s got its retail sales and CPI figures due today so let’s see if the actual numbers do support further gains for NZD/CAD.
I’ll probably wait until next week if I decide to take a reversal setup on this pair since I don’t want to keep entry orders exposed to weekend event risk or potential gaps. I’ll keep y’all posted on my trade decisions through my Twitter account so make sure you’re following me!
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