NZDCAD Top-Down AnalysisHello Traders,
Here is the Top-Down Analysis of NZDCAD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 41 - 06 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 to test weekly resistance. Price also has support of rising trendline.
D > We can see formation of H & S pattern, hence we can expect bearish movement.
As per COT NZD saw addition of few Long and more Short reducing net positions, confirming weakness of NZD for the said week. ZXY improved its position last week. CAD saw closure of both Long and Short positions, N-R saw addition of Long and Short positions and Commercials saw closure of both Long and Short, confirming weakness of CAD for the said week. CXY gained strength last week.
4H > Price is creating LH and LL in its bearish trend, price needs to break 4H support level to confirm bearish trend. We expect drop till support trendline.
Pair Correlation > NZDCAD has positive correlation with NZDCHF and AUDCAD and negative correlation with EURNZD and GBPNZD.
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 you can share your view and ask questions.
Thank You
AP17FX
