By Tomasz Wisniewski, Alpari
As long as the price is making higher lows and higher highs, the trend is bullish. On the NZDCAD we have an uptrend at its finest. This week is pretty remarkable: we beat the highs from 2014 and the NZDCAD climbed to its highest levels since 1997. This is a long term trading Occasion with big ‘O’ not only because of the trend, but also because of a positive point swap which allows us to use a carry trading strategy.
The sentiment is positive as long the price will stay above the 0.955 support. Here is the place where two lines cross. The first one is a horizontal support created by long-term tops and the second one is a neck line of iH&S. One can argue that inverted Head and Shoulders formations should be taken seriously only after the downswings, but here it ends the side trend and we consider it significant. Anyway, the support is quite clear and no one should argue about the importance of this level.
Article submitted by Alpari.com