AUD/CAD and NZD/CAD: Trapped between averages
|
Consistent to view long-term targets for the current 3 to 6 month period, horrendous currency pairs AUD/CAD and NZD/CAD are next.
Both AUD/CAD and NZD/CAD suffer from severe range compression. AUD/CAD is the better pair to trade but not by much. Both NZD/CAD and AUD/CAD are deeply oversold but blocked to move higher by solid averages. While NZD/CAD and USD/CAD correlate to USD/CAD at +83% and +73%, the correlation to USD/CAD is preventing USD/CAD to move higher.
Massive oversold USD/CAD must break the correlation to AUD/CAD and NZD/CAD to free float and allow USD/CAD to trade correctly and meet oversold targets.
AS AUD/CAD and NZD/CAD are the top pairs to overall NZD and AUD prices, blocked averages and range compression to NZD/CAD and AUD/CAD is enough to contain NZD/USD and AUD/USD to move significantly higher.
AUD/CAD from current 0.9451 to higher must break 0.9492, 0.9568, 0.9582, 0.9587, 0.9609 and 0.9621. Oversold AUD/CAD must trade to at least 0.9571 or 120 pips higher. Below, 0.9439 and 0.9356 hold absolute bottoms.
Weekly trades, long 0.9446 to target 0.9557 and 0.9576.
NZD/CAD
NZD/CAD from current 0.8759 is trapped between 0.8691 to 0.8805 and 0.8875. Above 0.8875 then next comes 0.8913 and 0.8978 at the 5-year average. Most vital to NZD/CAD is the 10 year average at 0.8789 then 0.8691. NZD/CAD's price is located in a horrible position.
Weekly Trade: Long 0.8741 to target 0.8826 then 0.8847.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.