The New Zealand dollar versus the Canadian dollar currency pair is trying to rotate towards 0.8514.
After the strong decline that started after the second confirmation as resistance of the 0.8915 level, the price tried to establish itself under the weekly support of 0.8344, but after printing a low at 0.8236 which was followed by a higher low, the bulls were determined enough to be persistent and as a result they were able to revisit the 0.8514 level.
After that, the price declined, getting very close to the 0.8344 support. But interesting to point out is that the price looks to concentrate around the 0.8400 psychological level — not highlighted on the chart. This fact needs to be taken into account, as it is possible to be confirmed as support.
So, two main scenarios are possible. In the first one, the price rotates from here, beginning another appreciation towards 0.8514, with the possibility of both piercing the level, or pausing, with an eventual confirmation of it as resistance.
In the second scenario, the price might throw an extension to test 0.8344 as support, which might cause the day to close as a pin-bar. If that is the case, then 0.8514 might give way, the next target being 0.8577.
The third scenario will materialize only if, in the end, 0.8344 turns to resistance, in which case the previous low of 0.8236 might serve as a first profit taking area.
The price pierced the resistance of 0.8417, but then it flipped back under it. However, the bulls seem to be willing for another try, as the price had the chance to push lower after 0.8417 was confirmed as resistance, but did not.
As a result, is reasonable to wait for 0.8417 to be confirmed as support and, as a consequence, to serve a new appreciation, the first target being 0.8516, followed by 0.8606.
Only an unsuccessful attempt to confirm 0.8417as support may trigger further downwards movement, with a target at 0.8307.
Levels to keep an eye on:
D1: 0.8344 0.8514 0.8577
H4: 0.8417 0.8516 0.8606 0.8307
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