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
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The ABCD pattern is a breakout pattern that has a confluence with the Cup & Handle bottoming pattern.
Daily chart
-637643232739432104.png)
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
-637643233029990175.png)
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
-637643233364191010.png)
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.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
