It's our 19th anniversary!

Short-term Trading Idea FX NZD/CAD – Bear Speculation: Return to 0.8490

Trading opportunities for currency pair: the NZD/CAD has done the minimum after leaving its sideways trend. After an update of the maximum, I’ expecting a return to 0.8490 fof the New Zealander.

Background:

The last idea I did for the NZD/CAD came out 28th September. Back then the NZD/CAD was bouncing from the 0.8289-0.8355 support zones and exited the sideways trend which it was stuck in. Due to this, I considered a strengthening of the New Zealand dollar against its Canadian counterpart to 0.8698. The target was reached on 8th October. On Friday, the New Zealander reached 0.8709.

Current situation

Despite a growth in oil quotes, the technical factors are still controlling the market. In addition to this, the 149th Global Dairy Trade auction index shot up by 9.9%.

What’s interesting at the moment?

The NZD/CAD lifted to 0.8709. Since the CCI indicator is in the +100 zone, the risks of testing 0.8730 are very high. I’m expecting it to force a return to 0.8490 for the New Zealander. Here I’m hedging my bets more on the technical factors than the fundamental ones.

Why not take advantage of the improved version of the Trader’s Calculator.

Calculate the swap and point cost >>>

 

Attention:

Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.

Back to top