Hi Traders! Today I share with you my NZDCAD forecast and technical analysis. 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 Traders Academy Club Spoiler alert – free memberships are available! Let’s start our analysis now from the daily chart.
NZDCAD D1(Daily) Chart Analysis – Psychological Level, Bearish Divergence, Uptrend Line Breakout, ADX Indicator
On the daily chart, the price which was moving higher reached the psychological round number 0.90 respected it and is bouncing lower from this zone. We also had a bearish divergence that has formed between the first high that has formed on 9th June 2020 and the second high that has formed on 31st July 2020 based on the moving averages of the MACD indicator. We also had a good uptrend line that has formed and the price which is moving lower has currently broken below this dynamic support, we may consider these as evidences of bearish pressure. After the breakout of the uptrend line, we had a pullback and currently, we have a continuing bearish divergence between the first high that has formed at 0.88663 and the second high that has formed at 0.89384 based on the histogram of the MACD indicator which we may consider as another evidence of bearish pressure. Also, the ADX indicator gave a bearish signal at the cross of -DI (red line) versus +DI (green line), and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bearish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bearish view.
NZDCAD H4(4 Hours) Chart Analysis – Strong Resistance Zone, ADX Indicator
On the H4 chart, the price which was moving higher has created a big double wave to the upside. While measuring the first wave using the fibonacci expansion tool we could see that the price which was moving higher reached the 61.8%(0.89168) fibonacci expansion level of the first wave, respected it, and has bounced lower from this zone. Also, we had a strong support zone and the price which is moving lower has broken below this strong support zone and is holding below it. Currently, this support zone acts as a strong resistance zone for us. We may consider these as evidences of bearish pressure. In addition to this, the ADX indicator gave a bearish signal here as well at the cross of -DI (red line) versus +DI (green line), and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bearish pressure. So in my POV until the strong resistance zone shown in the screenshot below holds my view remains bearish here and I expect the price to continue lower further.
Technical Analysis & Forecast Summary
NZDCAD D1(Daily) Chart Analysis
- Psychological Level, Bearish Divergence, Uptrend Line Breakout, ADX Indicator
NZDCAD H4(4 Hours) Chart Analysis
- Strong Resistance Zone, ADX Indicator
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Certified Financial Technician