NZD/CAD Price Analysis: Bulls looking for hourly and daily extensions
|- NZD/CAD has perked up from daily support and bulls are paying attention to price action.
- Both the daily and hourly time frames offer prospects of a run to test the daily resistance.
Bulls are moving in on NZD/CAD as it threatens a breakout from an accumulation phase that started back in June.
The following illustrates the bullish bias in a top-down analysis.
Weekly chart
The ABCD pattern is a breakout pattern that has a confluence with the Cup & Handle bottoming pattern.
Daily chart
The daily chart shows that the price is supported on the retest of the prior resistance structure from where the price would now be expected to extend to the upside.
4-hour chart
The 4-hour ABCD pattern is confirming the bullish bias on a retest of level B from where bulls would be expected to engage with force to test daily resistance.
1-hour chart
Bulls seeking instant entry can engage from the hourly time frame near 0.8810.
Considering the accumulation on the longer-term time frames, a target as high as the -61.8% Fibo of the correction's range that meets the daily resistance in 0.8850 can be set for 3.5R.
However, a higher probability take-profit target comes in at 0.8835 as the -272% Fibo for 2R.
While the price might move higher initially, there could be a further test of buyer's commitments in the low 0.8800/10 area prior to lifting off towards fresh daily highs.
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