30.11.202012:12 Forex Analysis & Reviews: Trading idea for the NZD/CAD pair

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

When trading cross-rates, the best method to use is grid trading because usually, quotes who have moved so much without rebounding, pull back strongly.

One of the most promising cross-rates is the NZD / CAD pair, which, to date, has moved 11,000 pips since the beginning of the year:

As we can see in the chart, the pair has the classic pattern for cross-rates: after passing 10,000 pips five times, the quote will undergo deep corrections, up to a complete reversal. This scenario is very profitable.

In this situation, sell limit orders should be set up (by 500-1,000 pips), starting from the current price to higher.

If the first transaction moves the quote by 1,000 pips, take profit.

Of course, traders still need to monitor and control the risks to avoid losing profit. Trading is very precarious, but also very profitable if right approaches were used.

Good luck!

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.