NZDCAD- 4HR

NZDCAD –

Fundamental positives for both the New Zealand Dollar and the Canadian Dollar continue to stack up this week as the commodities space shows renewed interest, and discussions of successful Covid-19 vaccines seem to increase daily. However, it’s the New Zealand Dollar that’s stealing the headlines at this moment in time, printing 2020 highs against the US Dollar, and in the battle of the ‘Commdolls,’ this one appears to have the advantage.

The technical picture suggests we could be in for further NZDCAD rallies based on the current bullish trend’s strength. With the price action well above the Ichimoku cloud on the four hourly charts, the NZD looks adequately supported. The lagging span (purple line) similarly situated above the cloud is further confirmation of this idea.

Despite the bullish tendencies, there does appear a slight divergence occurring on the RSI indicator, so the prospect of a correction may not be too far off. If we follow the Ichimoku cloud levels, the psychological price of 90.00 presents itself as a possible target for such an event before rebounding to upper zones. The previous low of 84.50 would be another price point to monitor as moves past this price could tip the scales to a more bearish outlook in the shorter-term.

To the upside, the last time we saw price action around these levels was back in Mar/Apr 2019, during which period we saw a high of 92.18. price-wise, we’re still a fair distance from this point, but certainly, one to consider as the latest trend develops.

 

Note: Click on charts to enlarge.

 

By Adam Taylor CTEe

.@adamt_trading

Sources: Go Markets, Meta Trader 5, TradingView, Bloomberg

Disclaimer: The articles are from GO Markets analysts,  based on their independent analysis or personal experiences. Views or opinions or trading styles expressed are of their own;  should not be taken as either representative of or shared by GO Markets.  Advice (if any),  are of a ‘general’ nature and not based on your personal objectives, financial situation or needs.  You should therefore consider how appropriate the advice (if any) is to your objectives, financial situation and needs, before acting on the advice.  If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.

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