The NZDCAD has fired off a small Bullish Engulfing Bar (BUEB) on the daily price action chart. This engulfing bar is small and not commanding like the best trade setups. Price in recent times has been moving lower after price fired off a false break pin bar. This false break pin bar made a clear false break of the ranging sideway box that price had been trading in and once price confirmed the pin bar and moved lower, price made a solid move lower.
Price has since broken a key daily support level that could prove crucial in the coming days or weeks to where price goes. If price does break the high of the BUEB and move higher, the old key daily support level could turn into an important price action flip level and new resistance level where traders could target new high probability short trades on their intraday and daily time frames. If price breaks lower and through this support level inline with the current move lower, traders could look for a breakout-retrace setup as explained in yesterdays daily forex commentary which can be found here Gold Winding Up With Inside Bar – Getting Ready to Breakout
NZDCAD Daily Chart
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