Trading opportunities on currency pair: NZD/CAD rate has strayed from the trend line: Due to this it’s worth considering a growth of the New Zealander to 0.9169 as part of a correction. A break in the trend will cancel out further growth.
I came up with an idea for the NZD/CAD on 20th April. In that idea I expected the pair to correct to 0.9460 and a reduction of the New Zealander to 0.9018 on the back of oil price growth. The NZD/CAD slid to 0.9454. On Thursday 23rd April the NZD/CAD broke its trend and fell by 180 points to 0.9197.
Sales of the New Zealand dollar intensified after the Reserve Bank of New Zealand’s John McDermott declared that the central bank is not yet considering raising interest rates and that the monetary policy should remain stimulative for an extended period of time.
The target was reached last week. On Wednesday, Brent Crude hit 69.63 dollars following the publication of a report by the Ministry for Energy. Statistical data for last week showed a reduction in US oil reserves by 3.882 million barrels (forecasted +1.5 million barrels). The NZD/CAD rate dropped to 0.8981.
A correctional phase from the 70-dollar psychological level has started. Oil cheapened from its 69.63 maximum to 64.23 (including Friday). Due to this the NZD/CAD rate recovered to 0.9042.
The NZD/CAD has strayed from the trend. It’s therefore worth considering a growth for the New Zealander as part of a correction to 0.9169. It’s possible that the rebound might even be higher. We’ll see if Brent passes 70 or not. Whilst oil is undergoing a correction, I reckon the pair will correct to 0.9169.
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