The Overbalance analysis aims to identify three financial instruments, analysed mainly on a daily/four-hourly interval (D1/H4). The analysis uses only the Overbalance methodology, which allows us to determine where the trend may continue or where it may change.
Today’s analysis covers three instruments, assessed solely in terms of the 1:1 correction structure.
EURCAD
After a long period of consolidation, the EURCAD currency pair reached key support at 1.5945, which results from the lower limit of a broad 1:1 pattern. If buyers appear at this point, it will be a signal to resume the upward trend. According to the Overbalance methodology, as long as the support is not permanently negated, the upward scenario remains valid. On the other hand, breaking through the 1.5945 level could lead to a change in the trend, which has been ongoing since November 2024.
EURCAD – H4 interval. Source: xStation5
EURUSD
The EURUSD currency pair has been in an upward trend for a long time, but since the end of January we have seen a clear downward correction. If the downward movement continues, the key support level remains at 1.1575, which is the lower limit of the broad 1:1 pattern. The nearest resistance level is at 1.1820, which is the upper limit of the local 1:1 geometry. As long as the price remains below this resistance, the downward pressure may continue.
EURUSD – H4 interval. Source: xStation5
NZDUSD
The NZDUSD currency pair broke through the important support level of 0.5950, which may indicate a potential shift to a downward trend. According to the principle of polarity, this level now acts as resistance. If the price falls below 0.5910, then according to the Overbalance methodology, we can talk about a change in the trend to a downward one. At the moment, as long as the price remains below 0.5950, the baseline scenario remains a deepening of the decline.
NZDUSD – H4 interval. Source: xStation5
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