While most currency enthusiasts see an about to drop New Zealand Vs Canadian dollar, NZDCAD weekly technical outlook suggest the opposite.
25 March, AtoZForex –On the broad scale, NZDCAD has been on a bullish trend for the most part. After finding a bottom at the 2009 low of 0.6151, the bulls have held sway for this long. Typical of the forex market. The bull trend, however, has not been without bumps. Currently, the broad bull trend seems somewhat over-extended, but the technical structure stands in stark disagreement as there just might be new highs in the offing.
Until three monthly sessions ago, one would have concluded that the high of 0.9922 is here to stay. The counter attack by the bulls is an indication they only took a breather. The sell-off after the top of 0.9922 has been threatened by the bullish engulfing candle of three months ago. the month that followed saw a validation of the engulfing pattern by closing above the prior month’s close. Although price action of the month running has been bear dominated, it’s safe to treat the move as mere corrective. Still on the monthly time chart, the low of 0.9201 has provided a strong support for the bulls. so long as this territory stays defended, further rise of NZDCAD will be seen going forward. From all indications, a retest of the 0.9922 resistance is probable in the months ahead. What happens thereafter remains to be seen.
NZDCAD weekly technical outlook; Weekly Chart
NZDCAD’s prevailing bull trend is further buttressed by the price outlook on the weekly frame. The bearish close of three weeks ago has been undone by the close of the two weekly sessions that followed. Interestingly, price is turning northwards after encountering a falling trend line on the weekly time frame. This obvious rejection further points to the bulls dominance. Support on the weekly time chart lies at 0.9268. The bulls will have the 0.9550 resistance to battle with in their advance to new highs. Once the 0.9550 resistance is taken out, a fast move towards the 0.9922 resistance and beyond could result.
NZDCAD weekly technical outlook; Daily Chart
Price action on the daily frame equally supports the bulls cause. price is seen bouncing off key Fibonacci level on the daily time chart. However, price will need to overcome the minor resistance around 0.9472 region for an accelerated move upwards to occur.
On the flip side, the 0.9201 support is substantial. price breach of said support would not only put a question mark on the bulls’ prowess, but could inspire huge sell off of NZDCAD. The next area of interest if that happens will be the 0.9103 major support level. For the time being, though. our bias remains bullish.
What is your view on NZDCAD weekly technical outlook; Are the bulls done? Please share your view in the comments section below.