The New Zealand dollar versus the Canadian dollar currency pair, as expected, appreciated and reached the 0.8692 old support.
After printing the low of 0.8236, the price bottomed around the weekly support of 0.8344. It then confirmed the support and appreciated, piercing 0.8514 and 0.8577, respectively. This facilitated the extension until the old weekly support of 0.8692.
From here, if the bulls maintain their dominance, the price has two possibilities. The first one is to form a consolidation. It may be a short-lived one — like a bullish flag or a pennant — or an extended one, as a range. In this context, both aggressive and conservative traders have opportunities.
The aggressive ones are expecting a false piercing of the consolidation phase of the best price within it. The first target for such an approach is represented by 0.8692.
On the other hand, the conservatives are waiting for the consolidation period to end with a candle closing above the weekly support or, even better, to extend above it and then to confirm 0.8692 as support. In this case, 0.8915 will serve as the main target, with 0.8800 and 0.8700, respectively, as intermediate targets (levels not highlighted on the chart).
Aside from the consolidation, the price can retrace towards 0.8577 with the purpose of confirming it as support. If this scenario is the one that materializes, then 0.8692 is the main target for parking profits.
The bears have their own chance if they manage to print a false piercing with respect to the 0.8692 level. In the event of such a development, 0.8577 takes the role of the main target.
Starting with 0.8307, the price went into an appreciation phase that confirmed important levels, such as 0.8417 and 0.8516, respetively.
Considering this, the expectations are for the appreciation to receive yet another impulse to the upwards. This will come after the price confirms 0.8600 or 0.8667, respectively, as support.
The objectives are represented by 0.8716, followed by 0.8782.
Only if the price confirms 0.8600 as resistance, then it can be considered that the bulls are, at least, pausing, if not handling the power to the bearish side.
Levels to keep an eye on:
D1: 0.8692 0.8915 0.8577
H4: 0.8600 0.8667 0.8716 0.8782
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