- NZD/CAD bulls on the retreat
- Bearish momentum expected below 0.88
NZD/CAD looked strong last week – hitting a 15-month high of 0.9011, but then it started trading lower along with a fall in RSI readings to 53 from 66.
This week saw the pair declining to the current 0.8800 – 0.8890 trading zone after the price and RSI diverged forming higher high and lower high respectively.
If the pair posts a daily close below the low-end of the current trading zone, then we can expect NZD/CAD to move further down to the September 2018 high of 0.8715. On the other hand, if the price stays up, above the lows of the current zone, we can see the pair trading towards February 2019 lows: the high-end of the present area.
Also, we have to note that the bullish trendline from the July 1 low at 0.8747 was broken on Monday, giving further hints of bear control.
So, we can see that the pair has started a bearish momentum creating lower highs with lower lows. But, if the bullish trendline comeback in play if the price moves back above that, effectively ending the downward trend.
Hence, if the pair moves above 0.8900, an immediate upside move to 0.8955 is in the cards; a break below 0.8793 means 0.8740 will be the direct target on the downside for NZD/CAD.
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