We believe that NZDCAD is currently on its 3rd wave, we had an opportunity to short it at 0.8478 with stop loss at 0.85, take profit target at 0.825.
Trade was stopped out at 0.8813. Since the trade was executed, it did not move in our favor, this could be due to profit taking by traders after a huge move on Friday. Since it did not move in our favor and it failed to establish a lower low, i wanted to close this position prematurely. However, price did not reach our adjusted take profit level.
Our trade idea is to short NZDCAD at 0.8784 with stop loss 0.8813, take profit 0.871and risk reward 2.4. NZD is weak across across the board while CAD is slightly strong, hence NZDCAD is a good pair to short. NZDCAD broke below 0.88 and we can observe bearish engulfing signals near 0.88 level. We will hold on to our short as long as this level holds.
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