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.
On the daily chart, after the strong bullish rally, currently, it looks like a correction is happening in the form of double wave down. Also, we have a key support zone that has formed based on the 100%(0.83377) Fibonacci expansion level of the first wave. The price which was moving lower has reached this key support zone. In addition to this, we have a bullish divergence that has formed between the first low that has formed at 0.73570 and the second low that has formed at 0.72903 based on the MACD indicator which we may consider as evidence of bullish pressure. In addition to this, based on the Parabolic Sar we could see that the dots are below the price which we may consider as yet another evidence of bullish pressure. Also, currently, there are no signs opposing this short-term bullish view. So everything looks good here for the bulls and we may now move down to lower timeframe and look for evidences supporting this short-term bullish view.
On the H4 chart, we could see that the price which was moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. Currently, it looks like a correction is happening in the form of double wave down. Also, we have a key support zone that has formed based on the 100%(0.83377) Fibonacci expansion level of the daily first wave and the 100%(0.83450) Fibonacci expansion level of the H4 first wave. So based on all this, until the key support zone (marked in blue) shown in the image below holds my short-term view remains bullish here. If we get a valid breakout above the most recent downtrend line we may then consider it as a validation for this short-term bullish view and may then expect the price to move higher further.
NZDCAD D1(Daily) Chart Analysis
NZDCAD H4(4 Hours) Chart Analysis
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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Arvinth Akash
Home Trader Club Team
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