After hitting the monthly pivot point at the 0.87 mark mid-May, the New Zealand Dollar changed its sentiment against the Canadian Dollar and began a new wave up. As a result, the rate gained 2.78%.
However, these gains were limited by the 200– hour simple moving average which provided a strong resistance for the pair. Also, the NZD/CAD pair has reached the 50.00% Fibonacci retracement level. This retracement can be measured by connecting the low at 0.87 and the high at 0.92.
Everything being equal, a breakout could be expected through the upper boundary of a descending channel where the 200-hour SMA and the weekly PP is located.
