From Investor to Scalper is a cycle of analysis in which we take one financial instrument and the analysis includes a detailed look at the value from the monthly/weekly chart to the H1/M15.
NZDCAD since January 1982 has been moving in a horizontal trend (in consolidation). As a result of the increases taking place since February 2009, the market has again reached the area of 0.9825, where already in November last year the first strong supply reaction appeared. Despite this, during the following months the exchange rate fluctuated near this resistance until June this year, when declines began.
Looking at the weekly chart, we notice that as a result of these drops the rate reached the area of local support, where a demand response occurred, which started dynamic growth lasting for almost five weeks.
If this trend continues, in the near future we could even expect a re-test of the vicinity of level 0.92 coinciding with the measurement of 50% Fibonacci correction.
This scenario is also supported by the fact that the market has broken local downward trend a week ago. However, it should be noted that the exchange rate keeps oscillating near local resistance, where the first supply reaction has already appeared. If this zone is rejected, we could expect at least a downward correction and re-test of the recently defeated resistance (now support) coinciding with the measurement of 38.2% Fibonacci correction from the last growth impulse.
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On the H1 chart, however, we can see that for this correction could occur, the market would first have to overcome the upward trend line. As long as this support is not overcome, there upward trend remain intact.