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. Previous analysis is provided here. 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.
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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).
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