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NZDCADANALYSIS

NZDCAD Analysis: Bearish Chart PatternsThe Weekly timeframe is examined in today’s NZDCAD analysis. The main purpose for analysis is to examine and explore chart patterns and their implications for the long term price development in the NZDCAD. Price peak in the week of December 28, 2015 is used as the left shoulder (LS) of a head and shoulders top pattern in the NZD CAD. Price levels and /or pivot used for the rest of the pattern (i.e. Head, right shoulder and neckline) are 0.99253, 0.95187 and 0.86540 respectively. The bearish implication conveyed by the chart pattern was confirmed in the week of August 06, 2018 with price closing below the neckline. Another pattern for consideration on the weekly timeframe of the NZD CAD is a descending triangle. The neckline of the head and shoulders pattern is used as the base or lower boundary of the descending triangle, while the downward sloping line (upper boundary) of the chart pattern is as highlighted on the chart. Even though price did resume a bullish swing after confirmation, the use of the Head and shoulders pattern is still valid until price breaches 0.99523 (head of the pattern). The width of the pattern is also shown on the chart and is measured from the head to the neckline. Projection of the width below the neckline helps to provide the minimum estimate for price in this bearish scenario. Same principle can be applied in the case of the descending triangle with the use of the width. Even though both patterns ideally have bearish implications, it is important to understand and monitor the current trend for a suitable price point to be bearish (sell) and also points of invalidation for any trade(s).
by Coin_Analyst
NZDCAD Analysis: Chart Patterns to Keep in Mind Conclusion for today’s Analysis: Price closing below 0.88757 presents a lot of trouble for NZDCAD bulls... NZDCAD analysis for today is carried out on a 6 hour timeframe candlestick chart with coverage of over 5 months of price action. Major resistance on the 6 hour timeframe is presented by price level at ~0.92583 with a double top forming between December 05 and December 19, 2019. Same price level was successfully tested on March 25, 2019 where a Head and Shoulders top pattern did confirm and a sell off afterwards. Bottom region of the boundary is represented by 0.89033 and 0.88757 with the former tested on February 12, 2019 and the latter from April 24 2019 to current date. The overall sideways price action presented in this analysis is a rectangle top chart pattern which is ideally bearish. The width of the pattern is also drawn and can be used for projection as a minimum expectation (target) for a bearish price swing upon confirmation of the chart pattern. Lack of progression after confirmation of the pattern that is followed by consolidation implies a return of price to the 0.92583 boundary and possibly higher. An alternative pattern that would have same implication as above and apply to the NZDCAD is the expanding triangle (broadening formation).
by Coin_Analyst