NZD/CAD Forecast: Price Faces a Key Support Level
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New Zealand Dollar vs Canadian Dollar Technical Forecast
NZD/CAD- Multi-Month High
Last week, NZD/CAD hit a 15-month high of 0.9011. However, the price retreated after as some bulls seemed to cut back. Ultimately, a weekly candlestick closed modestly in the red with a 0.2% loss.
Alongside that, the Relative Strength Index fell from 66 to 53 highlighting that bulls were losing momentum.
NZD/CAD Daily PRice CHART (November 20, 2018 – AUGUST 5, 2020) Zoomed Out
NZD/CAD Daily PRice CHART (MAY 1 – AUGust 5, 2020) Zoomed In
At the start of this week, NZD/CAD declined to the current 0.8800 – 0.8890 trading zone after signaling of a possible reversal of the upward trend as the price created a higher high, while the RSI created a lower high.
A daily close below the low end of the current trading zone my ultimately guide NZDCAD’s fall towards the monthly support level at 0.8715 ( September 2018 High).
On the other hand, a failure in closing below the low end of the zone may reverse the current price’s direction towards the high end of the zone ( February 2019 Low).
NZD/CAD Four Hour PRice CHART (June 23 – August 5, 2020)
On Monday, NZD/CAD traded below the bullish trendline support originated from the July 1 low at 0.8747 indicating a shift of bear’s control.
To conclude, the price started a bearish momentum creating lower highs with lower lows. With that said, a break above the aforementioned bullish trendline resistance could end the downward trend. Therefore, a break above 0.8900 may cause a rally towards 0.8955, while a break below 0.8793 may send NZDCAD towards 0.8740. As such, the support and resistance levels marked on the four-hour price chart should be considered.
Written By: Mahmoud Alkudsi,Market analyst
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.