Unveiling the Technical Complexity of NZDCAD in 2023: A Flag Formation Signals Potential Upside Breakout
23 May 2023
On Tuesday, our technical analysis focuses on NZDCAD, which has been displaying remarkably technical behavior in 2023, despite being an exotic instrument in reality.
For NZDCAD in 2023, we observe a consistent pattern: a channel down formation (depicted in black). In the long term, this channel down can be seen as a flag representing a broader upward trend. What sets this apart? In this case, the flag should be viewed as a corrective formation and is expected to result in a breakout to the upside.
In the short term, the price is currently finding support from the upward trendline marked in blue. This intriguing situation warrants attention and merits your time. A sudden significant move could provide a valuable trading signal. Therefore, a breakout above the upper black line could indicate a buy signal, while a breakout below the lower blue line could signify a sell signal. The decision will be determined in the near future as we closely monitor the price action.