The New Zealand dollar versus the Canadian dollar currency pair maintains the course towards the south, getting closer and closer to the 0.8400 psychological level.
After the piercing of the old weekly support, found at 0.8692, and its confirmation as a resistance (0.8704), the price continued the decline, piercing the two remaining support levels: 0.8577 and 0.8514, respectively. This is a clear message that the bears are still in control.
And now, with the departure of the price from the 0.8514 level, the price is closing in on the 0.8400 psychological level and also on its technical correspondent, the important weekly level of 0.8344. So, it is just a matter of time for the price to reach the 0.8344 target.
However, as always having a second plan is one of the best things one can do in the field of trading, if the price manages to rally from around the current area (at the time of writing the market price is 0.8451) above 0.8514 and confirm it as a support, then it will be a sign that the downwards movement ended and that the rally should continue at least until 0.8692.
The price is in a downwards movement that seems to be willing to take a pause around 0.8417. Even if aggressive buyers may be tempted to enter the market from here, such a decision should be met with extreme caution, given the momentum, which points downwards. As in the case of the daily chart, a buying opportunity is feasible only after 0.8516 is confirmed as support, with a target at 0.8600, followed by 0.8667.
Until 0.8516 is confirmed as support, any appreciation represents a new opportunity for the bears to short the market, targeting 0.8400 and 0.8344 (daily reference points).
Levels to keep an eye on:
D1: 0.8400 0.8344 0.8514 0.8577 0.8692
H4: 0.8400 0.8344 0.8414 0.8516 0.8600 0.8667
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