NZDCAD Looking Heavy
Price action in NZDCAD currently is offering plenty of downside opportunities. Following the corrective grind higher over recent months, NZDCAD is now breaking through the bottom of the bull channel, taking out support at the .8751 level. With the retail community holding a more than 90% long position and with both MACD and RSI giving bearish readings, there is plenty of room for this move to develop further. Downside targets are .8631 and .8475.
Key Data to Watch
The RBNZ rate hike overnight did little to inspire a rally in NZD and has instead seen the currency coming under heavy selling pressure. Canadian employment data at the top of the week will be the main focus now. Any upside beat for the releases will see the CAD rally extend further, creating more room for downside in the pair over the near term. The ongoing surge in oil prices looks likely to keep CAD supported in the near term and is also bolstering BOC tightening expectations.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.