NZDCAD: upwards channel
|NZDCAD, Daily
Upwards momentum seems to continue for NZDCAD since mid-June where the pair reverse the downtrend by rallied nearly 150 pips above 0.9527 level on June 14. Strength in the Oil price for the last 4 days weighs the CAD currently. WTI oil prices are over 1% higher but, it is still quite weak since it moves near year’s low, i.e. at $43.88 per barrel.
The NZDCAD seems to get back in the upwards channel observed since April, despite the downwards correction between June 9 and June 13. Hence since June 14, in a 4-hour chart pair seems to move in an upwards channel, making intraday downwards correction. Interesting is the fact that for the last 2 weeks higher high Fractals have been observed, while 200- period EMA supports quite strongly the pair in the 4-hour chart.
Therefore, a Long position in a Daily timeframe was taken with entry at 0.9647, despite the strength seen from Oil the last few days. Support was set near 200-period EMA, i.e. 0.9550. Targets are on 0.9740 (near year’s high) and 0.9790. Meanwhile, in both Daily and 4-hour charts, MACD is positive and Parabolic SAR turned positive just today.
This week Bank of Canada Outlook focus is on Bank officials. Governor Poloz and Deputy Governor Patterson step into the fray tomorrow. Poloz appears in a panel at an ECB event in Portugal, with no remarks published on the BoC site. Deputy Governor Patterson delivers a speech in Calgary, titled “Markets Calling: Intelligence Gathering at the Bank of Canada” on Wednesday. The speech will be published on the BoC’s website at 14:05 ET. There will not be a press conference, but an audience Q&A will take place. The slate of economic data is highlighted by April GDP on Friday.
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.