The NZD/CAD pair has reached and rejected the middle trendline of the descending channel on October 15. Then the price went up and broke above the downtrend trendline and 50 Exponential Moving Average on the 4-hour timeframe. This could have been the first bullish sign from NZD/CAD, which might result in the corrective move up, but only as long as the recently printed low at 0.8664 will be respected.
Currently, NZD/CAD is trading at the supply/demand zone, which means that consolidation is likely to continue, up until the point where the pair will reject the 0.8736 supply/demand level. While waiting for a potential upside wave, the pair should, at some point this week, find the support at 0.8736 and produce a new higher high. Perhaps this could be the final confirmation of the upswing.
The key resistance is located between 0.8842 and 0.8861, which is the price confirmed by two Fibonacci retracement levels. Both of Fibs were applied to the last move up, where price found the top for each bullish wave. These tops were formed on July 31 and October 18. Fibs show that 88.6% and 38.2% retracement levels are exactly at the same price, which is 0.8861. This is the reason why it could be the key resistance and the potential upside target should the uptrend start.
While the price is producing lower lows and lower high, the risk of the downtrend continuation remains high. However, as long as NZD/CAD is above 0.8664, the upside correction can be expected and can provide a good risk/reward opportunity for buyers.
Key support levels: 0.8664
Key resistance levels: 0.8736, 0.8861
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Currently, NZD/CAD is trading at the supply/demand zone, which means that consolidation is likely to continue, up until the point where the pair will reject the 0.8736 supply/demand level. While waiting for a potential upside wave, the pair should, at some point this week, find the support at 0.8736 and produce a new higher high. Perhaps this could be the final confirmation of the upswing.
The key resistance is located between 0.8842 and 0.8861, which is the price confirmed by two Fibonacci retracement levels. Both of Fibs were applied to the last move up, where price found the top for each bullish wave. These tops were formed on July 31 and October 18. Fibs show that 88.6% and 38.2% retracement levels are exactly at the same price, which is 0.8861. This is the reason why it could be the key resistance and the potential upside target should the uptrend start.
While the price is producing lower lows and lower high, the risk of the downtrend continuation remains high. However, as long as NZD/CAD is above 0.8664, the upside correction can be expected and can provide a good risk/reward opportunity for buyers.
Key support levels: 0.8664
Key resistance levels: 0.8736, 0.8861
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