Feb 23 14:12 GMT


Forex Expos

NZDCAD Tests A Key Support Zone Print E-mail
Daily Forex Technicals | Written by | May 17 13 02:41 GMT

NZDCAD Tests A Key Support Zone

NZDCAD has been selling off hard since late April due to a broader flood out of the kiwi, which overshadowed a push higher in USDCAD. Whilst the main driving force behind recent weakness in NZDUSD and strength in USDCAD was a surge towards the US dollar, the NZ dollar was also hit by news that the RBNZ had intervened in the currency market to devalue the kiwi and may do so again. Furthermore, NZDCAD broke through trend line support around the same time as the RBNZ's Wheeler was talking down the kiwi. Overall, the one-two punch proved too much for NZDCAD, which has lost over 300 pips since early April.

The pair may be due for a short-term retracement with RSI and price action testing significant support zones. Price action is testing a support zone around 0.8300 - 50% retracement from a rally late last year and a prior support level. A failure to push through this level may see the pair retrace back towards a resistance zone around 0.8410. On the downside, a confirmed break of a support zone around 0.8300 may see the pair to its equivalent 61.8% retracement level. However, NZDCAD may run into some support around its 200day SMA, currently around 0.8280.

Data watch - CAD

Canadian CPI data at 12:30GMT - core CPI is expected to increase 0.2% m/m, while headline CPI is expected to remain flat.


About the Author

DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Latest in Technical Analysis

Facebook MySpace Twitter Digg Delicious Google Bookmarks 

Analysis Reports

Central Bank Analysis
Economic Data Reviews
Technical Analysis

Forex Brokers © 2017 All rights reserved.