NZD/CAD: another end of a channel?

NZD/CAD: another end of a channel?

2020-06-26 • Updated

If we look purely technically at NZD/CAD, here is what we will see.

Throughout the entire May, with the exception of a dropdown during the third week of the month, the currency pair was moving sideways. Its movement was contained within the channel supported by 0.8482 and capped by 0.8560 from the upside. Closer to the end of the month, NZD/CAD made a surge above the channel’s upper border at point A. After that, it bounced down, stayed at the upper border again, bounced down again, and broke the channel to establish itself at a higher baseline level.

Eventually, it is now in a new sideways channel since the beginning of June: the lower border is at 0.8717, the upper border is at 0.8790. Now, just recently NZD/CAD inched above the resistance of the channel at point B, bounced down, and currently is in consolidation at the upper border. If it follows the same pattern it formed in May, we are going to expect some more consolidation right below 0.8790, then a bounce down, and eventually a sharp rise to a new baseline level.

Important: following the pattern doesn’t necessarily mean copying it. Probably, it would even be unwise to expect exactly the same behavior from NZD/CAD as in the previous month. For this reason, what we are to expect is a shift that will push the price out of the month-long sideways channel. It may be a bullish move to a higher base like at the beginning of June, it may be the opposite, in fact, or it may be just an end of the sideways pattern. So the first thing to prepare for is the end of the sideways channel. After that, market sentiment and fundamentals will tell how exactly it will end and what may come next.

In the short term, though, expect consolidation at the resistance level and a bounce back. If that fulfills, let’s get back to the currency pair and refresh the outlook.

1.png

                                                                                                    LOG IN

Similar

Top Stocks to Trade this Earnings Season
Top Stocks to Trade this Earnings Season

The S&P 500 had a good week due to the impressive start of Q1 earnings and favorable inflation data. In March, the consumer price index rose 5%, lower than the previous month's 6%, and met economists' expectations.

Top Stocks to Invest in 2023
Top Stocks to Invest in 2023

The previous year 2022, was undoubtedly tumultuous for the stock markets, with several stocks plummeting across multiple industries. Analysts have blamed the hard times on inflation, hawkish federal reserve policies, an impending global recession, and the ongoing crisis in Ukraine. This year, however, we're beginning to see some recovery in the stock markets. This article will find a few stocks worth buying this year.

MSFT faces gloomy forecasts ahead of earnings report
MSFT faces gloomy forecasts ahead of earnings report

In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.

Latest news

CAD Outlook Ahead of BoC Overnight Rate
CAD Outlook Ahead of BoC Overnight Rate

Get ready for some suspense as the Bank of Canada faces a tough decision on whether to raise interest rates or keep them on hold. The resilient Canadian economy and the goal of curbing inflation further are at the heart of this dilemma. While some money markets and economists predict another rate hike, others believe the central bank should exercise caution and wait, hinting at a possible increase later in the summer.

Australian GDP: What to Expect
Australian GDP: What to Expect

Let's take a closer look at Australia's recent economic performance. Brace yourselves for some interesting developments. The country's economy experienced its slowest growth since late 2021 in the first quarter, raising doubts about the Reserve Bank of Australia's rapid interest rate increases. Despite the bank's record-breaking 12 rate hikes in the last 13 months, the resource-rich economy only grew by a modest 0.2% in the quarter, falling short of economists' expectations.

Gold and the Majors ahead of the NFP
Gold and the Majors ahead of the NFP

Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera