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NZD/CAD Long Opportunity at 0.7437

The information, including Commentary and Trade Ideas, provided on FX360.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. Global Forex Trading and FX360 .com is merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. Any projections or views of the market provided by FX360.com may not prove to be accurate.

Last updated 9/8/2010 9:19 PM EST (GMT -5) 0 Comments - Add your comment

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Bradley W. Gareiss

Technical Analyst, GFT

A bullish Gartley pattern is currently forming on the NZD/CAD 2hr Chart below.  The pattern has excellent price symmetry, and acceptable time symmetry so far.  The trade would also enter near 50% of YZ on the 4hr Chart. Be cautious of taking this trade if long bars occur at the end of the CD leg, as they could signal excessive downward momentum. Also, there is are a couple of news announcements that take place at 8:15 am eastern time and 8:30 am eastern time.  If the pair is near entry when either of these come out, I would be cautious of taking the trade until the potential volatility subsides. The trade would be invalidated if it rose to 0.7520 before entering.

We are looking to buy the NZD/CAD if it drops to 0.7437 (Point D).  Point D is located at the convergence of the following points:

To recap, we will look to buy the NZD/CAD at 0.7437 with our stop placed at 0.7412.  Our initial profit target is 0.7474 (38.2% of CD).

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  • 4hr Chart - Trade would enter near 50% of YZ.
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  • 2hr Chart - Bullish Gartley; buy at 0.7437.

The information, including Commentary and Trade Ideas, provided on FX360.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. Global Forex Trading and FX360 .com is merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. Any projections or views of the market provided by FX360.com may not prove to be accurate.

The views of the authors and analysts are not necessarily those of Global Forex Trading, its owners, officers, agents or other employees. FX360.com and the currency research team will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on FX360.com. Global Forex Trading and the currency research team do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.

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