Missed the channel breakout on NZD/CAD?
You might still have a chance to catch a reversal on this quick pullback!
Here are the levels I’m watching:
NZD/CAD 1-hour Forex Chart by TradingView
Thanks to the Bank of Canada‘s shift to a less hawkish stance, NZD/CAD has been able to bust through its falling channel resistance!
This suggests that the tide is turning in favor of an uptrend, but it looks like the rally is running out of steam.
Or will a retest of the former resistance zone encourage more Kiwi bulls to charge?
The Fibonacci retracement tool shows that the 38.2% level is already drawing some interest from buyers, but a larger pullback would offer a better return-on-risk.
The 50% level is looking pretty solid, as it lines up with the dynamic support at the moving averages and a former ceiling around .8435.
Technical indicators seem to be in favor of more gains, as the 100 SMA is starting to cross above the 200 SMA while Stochastic is already heading north from the oversold region.
If any of the Fibs are able to keep losses in check, this forex pair could resume the climb back to the swing high at .8530 and beyond!
Just don’t forget to check out the average NZD/CAD volatility when setting your entries and exits.
Comments are closed.