NZD/CAD 1H Chart: Kiwi at crossroads
NZD/CAD is being guided by three patterns, namely, two descending channels and a short-term channel up. The pair is currently moving along the upper boundary of the five-month channel circa 0.8975. The two other patterns, however, imply that the Kiwi should still strengthen against the Canadian Dollar within the next week up to the psychological 0.90 mark.
Thus, two scenarios should be examined. On the one hand, the rate could find support at the 55– and 100-hour SMAs and the weekly PP and appreciate up to the aforementioned 0.90 level and subsequently form a retracement from the long-term channel. This scenario is more probable, especially if the rate remains sticky to this long-term channel.
On the other hand, the pair could reverse to the downside and target the weekly S1 at 0.8667 during the following trading days.
Thus, two scenarios should be examined. On the one hand, the rate could find support at the 55– and 100-hour SMAs and the weekly PP and appreciate up to the aforementioned 0.90 level and subsequently form a retracement from the long-term channel. This scenario is more probable, especially if the rate remains sticky to this long-term channel.
On the other hand, the pair could reverse to the downside and target the weekly S1 at 0.8667 during the following trading days.