Bottom is found at 0.6550. Current price at 0.6634 at last look is already overbought at 0.6627. To go short, price must break 0.6596. No ranges exist until 0.6800 above and 0.6318 below. Current price trades in a giant 482 pip no man’s land. Note the bottom at 0.6550, halfway point of the range at 0.6559 and short point at 0.6596. The area between 0.6550 – 0.6596 is a tough support area. This trade is not exciting. I offer points anyway.
Short points: 0.6627, 0.6620, 0.6605, 0.6603, 0.6602, 0.6601 and 0.6596. The strategy. Well extreme sell prices above are found at 0.6750 and buy point below extreme at 0.6480. Sell rallies is the way, don’t dare marry this trade. To stay away from this pair is also an option.
Bottom is found at 0.8500 and 0.8550. What is 0.8550? Misplaced and doesn’t belong. Current price at 0.8657 at last look is already overbought from the sell point at 0.8639. As was the case with NZD/USD, ranges are wide and far away. No ranges exist above until 0.8900 and 0.8974 and 0.8238 below, a 662 pip range. NZD/CAD trades in a giant 662 pip no man’s land. To go short, 0.8599 must break below then we have short ranges from 0.8500 – 0.8599. The stratgy is short due because current price is overbought.
Points 0.8639, 0.8631, 0.8621, 0.8611, 0.8608, 0.8606, 0.8599. Extreme sell points above are found at 0.8734 but this is severely overbought at this point. Buy extreme below found at 0.8488. The way is short, don’t marry the trade. Both NZD/USD and NZD/CAD are trades that may be taken together. Both are the same pairs. The corrollary is NZD;s twin brother AUD/USD. Both AUD/CAD and AUD/CAD are the same exact pairs.
To stay away from this pair as well is also an option.
I will post this anyway, maybe a good learning tool.
Brian Twomey, Inside the Currency Market, btwomey.com