NZDCAD False Break: Is it going to drop from here?

Unfortunately, the trade below became invalid on Friday 29th June due to volatility in the market.

 

(Click on image for Larger View)

The above is a NZDCAD Daily chart showing a Long High Test (HT) Bar at a horizontal Resistance level. The HT Bar on the 21 June shows a break above the previous 2 day range but closed near it’s open, a typical false breakout reversal Bar.

Looking at the weekly chart, there are strong reasons to go short here including a weekly Double Top and Lower Low (around end of May). For those who uses Fibonacci, the daily HT Bar is forming a Lower High at 78.6% Fib level.

The new bar looks bearish as I write even though it’s only the start of the day. Let’s see what’s going to happen next.

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