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Key takeaways
- What is the technical outlook for AUDCAD, NZDUSD, and USDJPY?
This analysis from the Overbalance series aims to identify three financial instruments, analyzed primarily on the daily/four-hour (D1/H4) timeframe. The analysis uses only the Overbalance methodology, which helps determine where a trend may continue or where a reversal might occur. Today’s analysis covers three instruments, evaluated solely in terms of 1:1 correction structures.
AUDCAD
Since late March, AUDCAD has been trending upward. The key level remains the support at 0.9755, which stems from the lower boundary of the local 1:1 pattern, as well as from previous local peaks. According to the Overbalance methodology, as long as the price remains above this level, the uptrend remains in effect. However, it is worth noting the lack of a clear demand reaction—further tests of this support level could weaken it, increasing the risk of a breakout to the downside. Therefore, the 0.9755 level is critical in the short term for the direction of the market.
AUDCAD – H4 timeframe. Source: xStation
NZDUSD
Since early April, the NZDUSD pair has been trending upward, but the market is currently testing key support at the 0.5840 level. Holding this level could trigger another upward move. Conversely, a break below this level and a return below 0.5828 could pave the way for a resumption of the downward trend. The current levels are therefore crucial for determining the short-term direction.
NZDUSD – H4 chart. Source: xStation
USDJPY
USDJPY has been trending upward for quite some time, but in April we saw a consolidation phase and two tests of support at the 158.10 level. This level was successfully defended, which supports the current uptrend. A break above the March 29 high would confirm the continuation of the uptrend. However, as long as support at 158.10 holds, the base case scenario is for further gains. A break below this level, however, could lead to a larger correction toward 155.11.
USDJPY – H4 chart. Source: xStation
