NZDCAD Minor Forex Pair

The NZDCAD forex pair has been undergoing a correction toward the Fibonacci level indicated in the screenshot above. However, this correction did not exhibit any typical ABC wave patterns on the 1-day chart, suggesting it was aggressive in nature. Recently, following President Trump's announcement regarding increased traffic, the NZDCAD pair has experienced several down days, breaking the higher low structure observed on the 1-day chart.

Broken 4-hour Trend

Now I am on the 4-hour chart, we can see more price action and we can see the trendline has been broken with a bearish impulse, and as mentioned the highlow structure has been broken. This NZDCAD setup is very similar to the USDCHF I posted earlier today. Although, this setup is looking better; I hope we get a nice, clean ABC correction from throughout the day today. If we do, I will enter a short position back to the lows of the 1-day correction.

Can We Identify a Trading Setup for Today?

The current price action on NZDCAD indicates a potential pullback toward the recently broken structure. It would be helpful to observe the formation of ABC waves during this movement. Once these ABC waves are established, it is advisable to draw a trendline along them. A break of this trendline could signal an entry point for a short trade, targeting the swing lows. 

I will provide an update as soon as we observe more price action later in the day. Thank you for your attention.

Update: Feb 6

The NZDCAD pair displayed a notable movement. Unfortunately, the price did not form an ABC correction, instead, the price stayed bullish and it is now stalled at the 0.382 Fibonacci level (refer to the screenshot below). Therefore, no entry was possible. 

This thread is now complete, and I will start a new one based on fresh momentum and a new bias for this pair when those signs emerge.