DXY and NZDCAD Head and Shoulders Pattern

In today’s live trading session, we went over the current status of our pending trade setups, and then we discussed a possible head and shoulders for NZDCAD.

The US Dollar Index (DXY) has yet to move from support at 93.40. The Dollar is stuck in the same spot as it was during yesterday’s live session. Due to this, our trade setups for EURUSD and GBPUSD are still pending. As traders, we know by now that when the DXY is consolidated, it is best to sit on our hands. It is not worth forcing trades, just to hold them in drawdown.

Despite the lack of movement in the DXY, we have found a potential trade idea for NZDCAD. Based on the weekly timeframe, this pair indicates a possible long to quarterly highs. But, an inspection of the daily timeframe presents us with a possible head and shoulders pattern. At the moment, the right shoulder is being formed. If price can break the neckline, we may have a high probability trade to the downside.

Tomorrow we have the FOMC meeting minutes were the Fed will preview the monetary policy that will be described at the next FOMC press conference. We may see some movement in the markets as a result, so we advise everyone to be careful during that time. As always, be safe and trade responsibly!