We’ve seen some really explosive moves on the NZDCAD this week.
Price has blasted through a major weekly level, and moved so fast, it has accelerated away from the mean value – leaving behind a price-mean gap.
These gaps are a sign that the market is primed for a mean reversion / correctional move. Mean reversions can be quite violent, the bigger the gap, the more violent the reversion tends to be.
The bears have already started to show their claws on the daily chart, and as of writing this a bearish rejection candle has formed – demonstrating weakness coming in.
Just a reminder that the October NFP jobs data is coming out this session – which is usually released alongside CAD employment data also – making it a volatile situation for all CAD pairs.
The NFP volatility will either destroy this setup quickly, or give it a massive booster.
Looking at the weekly level for a potential target area. Best of luck with your trading.
rin
I think it will moving up