NZD/CAD 4H Timeframe AnalysisNZD/CAD 4H Timeframe Analysis
In 4hr tf, price is in a downtrend, creating lower lows and lower highs. Within this move, price retested both minor key resistance between 0.80700-0.80900. Price then broke the minor key at 0.80700 and created a large volume of orders. Price then paused and didn’t make it to the next minor key support, which is where our Accumulation phase began.
Now, our objective is to wait for price to return and break again our minor key to hunt stop losses placed by a large volume of sellers. This will serve as our manipulation stage, where we wait for a liquidity grab. Once liquidity is formed, we then wait for another breakout at our minor key 0.80700. If this happens, we then wait for a 4hr candle to close below our minor key 0.80700. If this happens, we will set up our sell limit orders at 0.80680 after the 4hr candle close, with SL at 0.80900 (above liquidity formed) and TP at 0.79950 (next minor key support).
Fundamental Outlook
NZD Inflation Expectations q/q Impact
Actual: 2.06%
Forecast: 2.06%
Previous: 2.12%
The latest NZD Inflation Expectations q/q came in at 2.06%, matching the forecast but slightly lower than the previous 2.12%. A decrease in inflation expectations could signal lower future inflation, reducing the likelihood of aggressive rate hikes by the Reserve Bank of New Zealand (RBNZ). This could weaken the NZD in the short term, affecting currency correlations and risk sentiment.
Key Notes:
Patience is key – wait for liquidity to form.
Wait for a 4hr candle close below the minor key before placing a trade.
After liquidity is formed, adjust or move stops above liquidity to protect profits.
Disclaimer:
This analysis is for informational and educational purposes only and should not be considered financial advice. Trading involves risk, and you should conduct your own research before making any investment decisions. Past performance does not guarantee future results.
