{"id":88277,"date":"2016-04-18T06:52:47","date_gmt":"2016-04-18T10:52:47","guid":{"rendered":"http:\/\/countingpips.com\/?p=88277"},"modified":"2016-04-18T06:52:47","modified_gmt":"2016-04-18T10:52:47","slug":"short-term-trading-idea-fx-nzdcad-bull-speculation-double-bottom","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/04\/short-term-trading-idea-fx-nzdcad-bull-speculation-double-bottom\/","title":{"rendered":"Short-term Trading Idea FX NZD\/CAD \u2013 Bull Speculation: Double Bottom"},"content":{"rendered":"
April 18, 2016<\/div>
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By Vladislav Antonov, Alpari<\/b><\/p>\n

Trading opportunities for currency pair:<\/em><\/strong> negotiations in Doha have collapsed. From trade opening on Monday, oil has fallen to $41 per barrel, the NZD is up to 0.8945 against its Canadian counterpart. A double bottom and bull divergence has formed on the daily graph, as has happened on 23rd<\/sup> March earlier this year. Based on these two signals, a strengthening of the NZD to 0.9056 and then to 0.9162 is expected.<\/em><\/p>\n

Background<\/em><\/strong><\/p>\n

The last NZD\/CAD idea I made came out on 12th<\/sup> October<\/a>. I expected to see a return of the Kiwi from a 0.8730 maximum to 0.8490. The idea turned out a loss making one. The New Zealander only started weakening from 0.90. Then the NZD\/CAD rose from 0.8583 to 0.9571 due to oil prices falling.<\/p>\n

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NZD\/CAD Weekly Graph<\/p>\n

Brent has risen from a 27.08 USD minimum by 65.8%. As a result, following a bounce from 0.9571, a strong resistance zone formed. Before OPEC convened (17th<\/sup> April) to talk about freezing output, the Kiwi was reaching for the support at 0.8770.<\/p>

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Monday”s trades opened sharply down. A barrel of Brent fell 4.6% to $41.04. Sunday”s talks in Doha led into a dead end. The main reason for this was the lack of an Iranian representative present. The next OPEC meeting will take place in Vienna in June.<\/p>\n

The NZD\/CAD is trading at around 0.8945 against Friday”s 0.8863 close. The current growth is +82 points. On the daily we have a double bottom and the unsuccessful OPEC negotiations. By June the NZD\/CAD is able to return to 0.9162 (50% from 0.8752 to 0.9571) due to falling oil prices.<\/p>\n

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NZD\/CAD Daily Graph<\/p>\n

Trades on Friday closed at around 0.8863 with Brent at $43.01. Here I noticed the double bottom and a candle pattern indicating bull divergence. The same situation can be seen in the candle combination on 23rd<\/sup> March.<\/p>\n

With the talks in Doha down and out, oil fell to $41. This meant the NZD could strengthen against the CAD to 0.8945. Taking the factors listed into account, expect a strengthening of the NZD to 0.9056 and then to 0.9162.<\/p>\n

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Article submitted by Alpari.com<\/a><\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Vladislav Antonov, Alpari Trading opportunities for currency pair: negotiations in Doha have collapsed. From trade opening on Monday, oil has fallen to $41 per barrel, the NZD is up to 0.8945 against its Canadian counterpart. A double bottom and bull divergence has formed on the daily graph, as has happened on 23rd March earlier […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-88277","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/88277","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=88277"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/88277\/revisions"}],"predecessor-version":[{"id":88297,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/88277\/revisions\/88297"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=88277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=88277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=88277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}