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NZDCAD – Potential Double Top

As you can see on the daily chart of NZDCAD, price has been following the drawn uptrend line and now found resistance at $0.87900.

What makes this area appealing is the fact that price has not tested these prices since Dec of 2019. But keep in mind that rite below this area of resistance is a minor support area of $0.86900. This could act as support where buyers might come in to push the price further.

However price has now been trying to break above this price for 8 days and still not successful.

If you take a look at the intraday 1H timeframe above, you will see that price is not moving within a zone.

Looking at the above 1H ranging market, the fact that daily timeframe has been unsuccessful in a break above to make new highs and the daily bearish double top candlestick formation puts us on alert for a potential SHORT opportunity.

Now ! how will the market provide an opportunity?????

There are two areas where you can enter the market. Since we are looking for a SHORT opportunity, we are either waiting for price to approach a resistance zone or break below a support level and pull back to provide us with an opportunity.

With that in mind now we can monitor the price either move to the top of the zone or break below the range and pull back to what is now resistance.

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