The New Zealand dollar gained significantly against the Canadian dollar after Canada reported weaker-than-expected job numbers.
Can a key resistance area slow down NZD/CAD’s climb? Or do NZD bulls and CAD bears still have gas in their tanks?
We’re taking a closer look at NZD/CAD’s 4-hour chart for clues.
NZD/CAD 4-hour Forex Chart by TradingView
In case you missed it, the Canadian dollar took it on the chin Friday after August’s jobs report came in soft across the board. Not only did it miss forecasts, but it also fueled BOC interest rate cut expectations.
Meanwhile, the New Zealand dollar picked up some lift from a weaker U.S. dollar and the Loonie’s stumble.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the New Zealand dollar and the Canadian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
NZD/CAD has been trading in a downtrend since mid-June, but it just bounced from the .8050 area up to the .8150 zone.
The pair is still holding above the 200 SMA, which could keep the bulls interested enough to push it toward the .8190 region near the R1 Pivot Point or even the top of the descending channel pattern on the chart.
If sellers show up and paint bearish candlesticks in that neighborhood, the pair could slide back to the .8100 mid-channel area or even retest the .8050 lows.
But if buyers keep control and push past .8200, then we could be looking at a run toward the R2 Pivot Point or even the .8300 areas of interest.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
