NZDCAD Top-Down AnalysisHello Traders,
Here is the Top-Down Analysis of NZDCAD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 43 - 20 Oct
M > Market is moving in a downward channel, price dropped from resistance level of the channel completing the W formation.
W > Price dropped to test monthly support, faced rejection and moved up to test weekly resistance again. Price also had support of rising trend-line.
D > We saw formation of H & S pattern, hence expected bearish movement. Price dropped out of support trend-line but moved back in to pause at daily demand zone. As expected price broke out of demand zone. We expect price to continue with drop till weekly support.
As per COT NZD saw addition of both Long and Short further increasing net positions, confirming further improved strength of ZXY for the said week. ZXY has been gaining strength slowly since June 2020. ZXY however weakened last week. CAD saw addition of major Long and closure of Short positions with Short positions further reducing to least for current year, improving net positions (still in -ve). CXY further gained strength during the said week but weakened a bit last week.
4H > Price created a new H & S pattern on 4H time frame and with good momentum continuing to drop towards our target.
Pair Correlation > NZDCAD has positive correlation with AUDCAD, AUDUSD and NZDUSD and negative correlation with GBPNZD and GBPAUD.
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
