The Overbalance analysis 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 it may reverse.
Today’s analysis covers three instruments, evaluated solely in terms of 1:1 correction structures.
EURNZD
Last week, the EURNZD broke through key resistance at 1.9855, which corresponded to the upper boundary of the 1:1 geometric pattern. According to the Overbalance methodology, this breakout suggests potential for a move toward last November’s highs, around 2.0680. An additional argument in favor of the bullish scenario is the earlier double bounce off support at 1.9540. In the event of a correction, the 1.9855 level should act as short-term support.
EURNZD – H4 timeframe. Source: xStation
EURCAD
The EURCAD pair is attempting to resume its upward trend. The price has broken above the upper boundary of the 1:1 bearish pattern at the 1.5945 level and has also broken above the polarity of the previous bullish pattern, which falls exactly at the same point. According to the Overbalance methodology, as long as the price remains above the 1.5945 level, the bullish scenario remains in effect.
EURCAD – H4 timeframe. Source: xStation
AUDUSD
The AUDUSD price has broken below the key support level at 0.6905, which corresponded to the lower boundary of a broad 1:1 pattern. A break below this level could support a scenario involving a deeper correction or even a trend reversal. Currently, the 0.6905 level acts as key resistance. To signal a return to an uptrend, the price would need to additionally break above the 0.6984 level, where the upper boundary of the local 1:1 downtrend pattern is located.
AUDUSD – H4 chart. Source: xStation
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