NZDCAD - Looking Heavy At Short-Term Support After False Break
|Price Action Context
After trading into a long-term area of resistance (~0.87), sellers seem to have taken control short term, pushing price 200 pips lower since 30th of December, resulting in a counter trend false break and bearish impulsive move lower. After hitting a short-term support zone followed by an almost horizontal correction, price action suggest we might see another bearish impulsive following the correction, which potentially could clear the support zone.
Trending Analysis
Since the second half of 2017, the pair has been in a very volatile but bearish trend and for now, our bias remains bearish. A potential break of the short-term support zone would open up further downside towards 0.85 initially and 0.83 in extension. If bulls are able to defend this support zone, a move back up towards 0.87 is likely in our opinion.
Key Support & Resistance Zones
R: 0.8715 – 0.8740
S: 0.8580 – 0.8620
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