NZD/CAD Long

Following my resent analysis on the Euro against the Cad, here is a bullish bat for the New Zealand Dollar.

The NZD, like the euro, has seen some strength in past weeks- however it has began to pull back slightly. This loss of momentum has aided the rapid decline in its value against the Canadian dollar, along with the BoC interest rate rise. This decline has reached a key level for this pair, which will be illustrated below. Weekly support has been approached- an area where we have previously a seen solid reversal area for two shoulders! It is not unlikely that this pair will reverse in the same area.

Obviously, reversals come when there is an imbalance in supply vs demand/price vs actual value. As per the key support level, the harmonic pattern, and the sharp rise in the cad's value, I believe it is time for the NZD to rise and even out the current imbalance that has occurred due to the interest rate hike.

As always, risk will be 1:3 with the bat pattern.

Bat Ratios
X:B = 0.38-0.5
A:C = 0.382-0.886
B:D = 1.618-2.618
X:D = 88.6%

Comment:

The strength of the support level can clearly be seen on the weekly chart- it may well be considered monthly support to some. hopefully price gets lower so I can take a good entry.

Comment:

As well as the bigger picture, we also have a bullish hartley ready to long on the 1 hour time frame. Take a look!