Hello Traders,
Here is the Top-Down Analysis of NZDCAD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 48 - Nov 23
M > Market was moving in a downward channel, however price has broken channel to the upside and now testing monthly supply zone.
W > Price has formed two over extended W formations and can see loss of momentum and also bearish divergence. We can expect drop in price.
D > In bullish impulse we can see bearish candles at two key levels that will now act as demand zones. Market is in oversold zone and can expect a drop soon.
As per COT NZD further added both Long and Short improving net positions to max for the year, ZXY has been gaining strength for past 3 weeks, it is now testing a major resistance level. CAD further added Long but closed few Short positions. CXY lost its gained strength during the said period.
CAD currently has balanced Long and Short open positions and NZD has +ve net position. Hence in current situation we do not see any reason of price turning bearish unless either NZD weakens or CAD strengthens, which can be monitored closely with other NZD and CAD pairs.
4H > Price is moving in a bearish flag and a breakout to the downside can be expected.
Pair Correlation > NZDCAD has positive correlation with NZDCHF, NZDUSD and NZDJPY and negative correlation with EURNZD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of NZDCAD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 48 - Nov 23
M > Market was moving in a downward channel, however price has broken channel to the upside and now testing monthly supply zone.
W > Price has formed two over extended W formations and can see loss of momentum and also bearish divergence. We can expect drop in price.
D > In bullish impulse we can see bearish candles at two key levels that will now act as demand zones. Market is in oversold zone and can expect a drop soon.
As per COT NZD further added both Long and Short improving net positions to max for the year, ZXY has been gaining strength for past 3 weeks, it is now testing a major resistance level. CAD further added Long but closed few Short positions. CXY lost its gained strength during the said period.
CAD currently has balanced Long and Short open positions and NZD has +ve net position. Hence in current situation we do not see any reason of price turning bearish unless either NZD weakens or CAD strengthens, which can be monitored closely with other NZD and CAD pairs.
4H > Price is moving in a bearish flag and a breakout to the downside can be expected.
Pair Correlation > NZDCAD has positive correlation with NZDCHF, NZDUSD and NZDJPY and negative correlation with EURNZD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX