NZD/CAD has been in a downtrend for quite a long time. It trades at monthly lows, then bounce up after strong movements.
Currently, it is at both monthly and yearly lows, which means that traders can place another grid of buy limits.
So, starting from the breakdown of 0.85455, buy limits can be set in an increment of 300-500 pips. Take profit after a breakout, either at 1 pip above the first order or after a 1,000 pip rise.
This strategy is called grid trading, which is usually used on cross rates. It involves holding positions that are significant in time and distance. For this reason, we recommend using swap-free accounts, not increasing the volumes in the grid (0.01 standard lot for every $ 1000 of the deposit) and monitor price movements.
Good luck and have a nice day!
