NZDCAD: Bearish Sentiment Remains in Place
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We recommended a short NZDCAD position as one of our top trades for 2019, when the pair were trading around the 0.9200 level. We highlighted the strong downtrend and also how Fibonacci levels come into play, especially the 76.4% retracement level at 0.8678.
You can find all of our Top Trading Opportunities for 2019 here.
The New Zealand dollar is currently under selling pressure after the RBNZ deputy governor Bascand hinted that changes to bank capital requirements may weigh on inflation, which in turn may force the central bank to cut interest rates to help boost price pressure.
The pair are now nearing recent support around 0.8900, a level that has help this year. Around here sits the 61.8% Fibonacci level at 0.8917, which has been tested a few times but has held firm on a closing basis. A break below here would bring the previously mentioned 76.4% Fibonacci retracement level (0.8678) back into play with 0.8750 acting as a buffer on the way down.
Any move to the upside should find strong resistance around the 0.9100 level while the downward channel is now around 0.9220 and should remain intact.
NZDCAD Daily Price Chart (August 2015 – February 22, 2018)
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.