Hi Traders! NZDCAD short term forecast and technical analysis is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the daily chart here.
NZDCAD D1(Daily) Chart Analysis – Key Support Zone, False break, Bullish Divergence, Parabolic Sar, ADX Indicator
On the daily chart, the price which was moving lower reached a key support zone formed by the 161.8%(0.81096) Fibonacci expansion level of the first wave and the 100%(0.80766) Fibonacci expansion level of the second wave we have. The price respected this zone and is currently bouncing higher from it. In addition to this, we have a false break with a bullish divergence that has formed between the first low that has formed at 0.80423 and the second low that has formed at 0.80283 based on the MACD indicator. Also, based on the Parabolic Sar we could see that the dots are below the price which we may consider as another evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as another evidence of bullish pressure. So based on all this, my short-term view is bullish here and we may now move down to lower timeframe and look for evidences supporting this bullish view.
NZDCAD H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Downtrend Line Breakout, RSI Indicator, ADX Indicator, Parabolic Sar
On the H4 chart, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward-moving market conditions so it basically reflects a bullish environment. Also, the price which is moving higher has currently broken above the most recent downtrend line, we may consider this as evidence of bullish pressure. In addition to this, we have this downtrend line breakout on the RSI indicator as well, which we may consider as another evidence of bullish pressure. Also, the ADX indicator gave a bullish signal here as well at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. In addition to this, based on the Parabolic Sar we could see that the dots are below the price here as well which we may consider as yet another evidence of bullish pressure. So based on all this, until the strong support zone shown in the image below (marked in green) holds my short-term view remains bullish here and I expect the price to move higher further after pullbacks.
Technical Analysis & Forecast Summary
NZDCAD D1(Daily) Chart Analysis
- Key Support Zone, False break, Bullish Divergence, Parabolic Sar. ADX Indicator
NZDCAD H4(4 Hours) Chart Analysis
- Heikin Ashi Candles, Downtrend Line Breakout, RSI Indicator, ADX Indicator, Parabolic Sar
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short-term buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Happy Trading!
Arvinth Akash
Home Trader Club Team
