NZD/CAD – Looking for a shift in sentiment
|NZD as a single currency is looking overbought across the board (against its counter currencies). Canadian dollar is heavily correlated with Oil. With the economy looking to restart with vaccine hopes, OPEC restricting output, the outlook could be bullish for Oil and Canadian Dollar.
Let us look at some timeframe correlation:
NZD/CAD monthly
Moved higher from the 50% Fibonacci at 1.0835 (from 0.6143-0.9925). Looking to the BC leg we are fast approaching the 61.8% pullback at 0.207.
NZD/CAD eight-hours
We have bearish Butterfly formation between 0.9130 and 0.9165 (sell zone).
NZD/CAD one-hour
This timeframe highlights a bearish Carb formation between 0.9162-0.9164 lining up with the upper end of the eight-hour chart set up.
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