NZD/CAD Price Analysis: Bulls look for a break of critical resistance
|- NZD/CAD is bullish on the longer-term charts.
- The monthly and daily charts are in synch.
NZD/CAD bulls are eying up an opportunity to the upside based on the confluence f the monthly and daily chart time frames and market structures.
The following is a top-down analysis that illustrates the prospects for a run towards a test of the 0.89 area.
Monthly chart
As can be seen, the price has pulled back into a deep Fibonacci retracement which creates a bullish prospect in an extension to the upside.
Daily chart
The daily chart offers the same price formation and market structure.
4-hour chart
From a 4-hour perspective, where the price can be monitored for an optimal entry, there is still too much bearish structure while below the 21 moving average and until a break through the resistance.
On a retest of the old resistance, bulls can enjoy a higher risk to reward setup from a swing trading perspective.
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