NZD/CAD Price Analysis: Bears should stay wary of monthly support
|- NZD/USD traders await a break of ket structures for higher probability setups.
- Bears might want to think twice before committing considering the monthly support.
NZD/CAD is offering a mixed picture across the time-frames and until monthly support or weekly resistance are broken, then swing traders will need to sit on their hands or risk being caught offside.
The following is a topdown analysis starting from the monthly, weekly and then moving down to the daily chart to illustrate where the next opportunities could arise.
Monthly chart
This monthly support is problematic for the bears.
There cannot be any bearish bets, at least from a swing trading perspective, until this monthly support is finally broken and retested as resistance.
Weekly chart
However, we have a strong bearish structure on both the weekly and daily charts.
The weekly offers a bearish head and shoulders with prospects to the prior support while the daily chart's price is below the resistance structure and the counter trendline.
Daily chart
Until monthly support is broken, taking shorts is just too risky.
However, if the daily and weekly resistance structures gove out, then there will be a confluence across all three-time frames, which is ideal when seeking out a longer-term swing trading opportunity.
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