NZDCAD: Pending Short on Supportive Technicals
NZDCAD – Pending Short at 92.55 – Recent December highs.
Stop Loss – 93.80
Target 1 (50%) – 91.10 – 50% Fibonacci retracement.
Target 2 (50%) – 89.20 – 61.8% Fibonacci retracement.
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NZDCAD – Long-Term Down Trend Remains in Place
The recent oil bear market hit the Canadian dollar hard and against the New Zealand dollar sent it back to the bottom of the NZDCAD downtrend, started from the November 9, 2016 high at 99.28. Since then the chart has been dominated by lower highs and lower lows. The chart below shows the downtrend crossovers with the various Fibonacci retracement levels of the September 2015 – November 2016 rally where price action reversed. The current spot level – 91.48 - is nearing both the upper line of the downtrend around 93.00 and the 38.2% Fibonacci retracement level at 93.03 and is likely to provide a reversal point.
In addition, the RSI indicator – at the bottom of the chart – has just eased out of overbought territory. The previous times the RSI indicator showed either overbought or oversold levels, the price reversed back into the trend channel.
NZDCAD Daily Price Chart (August 2015 – December 13, 2018)
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.