Friday, October 30

NZD/CAD Price Analysis: Bullish breakout prospects on break of near-term resistance

  • NZD/CAD holds in range leaning with a bullish bias. 
  • The 4-hour time frame offers a bullish technical environment according to the indicators. 

NZD/CAD has been carving out a bullish scenario on the monthly chart. However, there is some more price development on the cards within a range.

Until the resistance can be broken, there are sideways range price action prospects.

The following is a topdown analysis which takes a look into the market structure and potential outcomes for the sessions ahead from a swing trading perspective.

The monthly outlook is bullish

As can be seen, the price has retested the support of the structure and trendline.

The path of least resistance is to the upside from this juncture.

Weekly is trapped

However, from a weekly perspective, we have a head and shoulders in the making on the completion of the right-hand side shoulder.

There could be some immediate downside but only as far as the trendline and structure support unless a breakout to the downside is going to occur.

The daily is a similar story

4-hour is more encouraging for the bulls

As the charts shows, there is a rising channel from which takes the price to a horizontal supply zone which may offer a breakout opportunity.

A break and test of the resistance turning support structure can now be monitored for on the 4-hour chart.

Technical indicators can be applied and monitored to offer more conviction.

Credit: FX Street

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