Bearish channel pattern analysis
The NZD/CAD currency pair has been exhibiting a bearish channel pattern, indicating a consistent downtrend in which the Canadian dollar has been outperforming the US dollar. However, a recent attempt to break out of this bearish channel proved unsuccessful, suggesting a lack of buying support and a potential continuation of the downward trajectory.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
This failed breakout serves as a bearish signal, reinforcing the prevailing market sentiment and indicating that sellers are still in control. Traders and investors should closely monitor the price action as it approaches the turning point within the bearish channel, as a break below this level could further confirm the bearish market outlook. In the event that the price line does breach the turning point in the bearish channel and falls lower, it would reinforce the bearish sentiment and potentially lead to an extended bearish market phase for NZD/CAD. Such a breakdown would indicate a significant shift in market dynamics, with increased selling pressure overwhelming any buying interest. Traders and investors may consider this scenario as an opportunity to enter or add to short positions on NZD/CAD, as it would suggest a further depreciation of the US dollar against the Canadian dollar. However, it is essential to closely monitor the price movement and wait for confirmation before making any trading decisions.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.