NZD/CAD 4H Chart: Triangle

The symmetrical triangle on the four-hour chart of NZD/CAD was initiated after the currency pair failed to extend the rally from the 200-period SMA started in mid-February. An encounter with the resistance at 0.9657 (Mar 19 high) forced the kiwi to enter a consolidation phase, which for now is expected to be followed by another bullish wave. And while the technical indicators speak in favour of such a scenario, especially on the four-hour and weekly time-frame, SWFX traders seem to be worried that a recent breach of the long-term up-trend (connects lows on Jan 2, Feb 4, Feb 19 and Apr 3) is going to result in a massive sell-off—72% of them are holding short positions.