NZD/CAD: Opportunities for a short position with the main movement

NZD / CAD Daily Chart Our Expectations: Declining Main Trend, Correction to Horizontal and Diagonal Resistance. Possibility of short positions with stop 0.8587

Alternative scenario: If the price rises above levels of resistance and can keep its levels above, then the correction will be deeper, followed by a 50% Fibonacci test that will spoil this scenario.

Comment: Decreasing main trend, correction to basic diagonal resistance. The price generates ever lower highs and deeper lows. At this level is also 23.6% Fibonacci, as well as 50 MA, which make it even more significant. Price Action signal from pin bar at resistance levels - the price failed to close over 23.6 Fibonacci and formed a bar with a long shadow overhead - a signal that the bulls did not find the necessary support to break through the level. Currently the price has made a 50% correction of the signal bar, which gives us good entry points. For more conservative traders, we are expecting a breakthrough in the previous bar. The CCI 50 is below 0, indicating that the main movement is negative. We are expecting a breakthrough at the minimum, with the CCI 14 going through a level of 0.00 from top to bottom, which will also give us the final reason to enter with a short.

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