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  • NZD/CAD is melting away to the downside as projected.
  • Bears are in control with price riding towards a daily W-formation’s structure. 

Further to the prior session’s analysis, NZD/CAD Price Analysis: One for the bear’s watchlist, the cross has indeed moved in accordance with the forecast and trading plan.

The following recaps the bearish thesis and brings us up to date with the live market price action and progress of the trade.

Prior analysis

As illustrated in the above daily charts from the prior session, the price has formed a W-formation.

The thesis is that following an impulse, a correction can be expected. When a W-formation has formed, the expectations are for a re-test of the neckline.

Using a lower time frame to find an optimal entry, the neckline can be targetted. 

In the prior session, it was explained that the 1-hour chart should be monitored for bearish conditions.

Prior 1-hour chart analysis

Live market, breakeven achieved