In font of a big chance, the bulls were not able to manage the situation on the New Zealand dollar versus the Canadian dollar and missed out the opportunity to direct the price towards the previous high, at 0.9281.
As the pair advanced from the 0.8321 low, the price formed a consolidation structure with the local support at 0.8915. It then tried to gain ground above the 0.9175 weekly resistance, but after making a high at 0.9281 the price was dragged under three potential support levels: 0.9175, 0.9100, and 0.8915.
The fact that the bulls could not keep the gains made at 0.9281 — see the candle on March 27, 2019 — gave the bears enough steam to push the price lower and into a territory that for them is strategically important: 0.8915.
As long as the price oscillates under 0.8915, the path to 0.8692 remains open. In the case of a scenario in which the bulls reconquer 0.8915 actually takes place, new visits to 0.9100 and 0.9175 are possible.
The price is contained in a descending channel, with evident confirmations of the bearish determination. So, as long as the price remains part of this descending move — does not cross the double resistance represented by the resistance trendline and 0.8895, respectively — an extension towards the previous low, at 0.8794, is in reach. Only a piercing of the aforementioned resistances will translate in a possible bullish comeback.
Levels to keep en eye on:
D1: 0.8915 0.8692 0.9100
H4: 0.8895 0.8794 0.8928
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