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NZDCAD Daily

NZDCAD Posts Outside Day Reversal Pre-BoC; Shorts Face 8700 Hurdle

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • NZDCAD posts outside-day reversal off long-term resistance confluence- bearish
  • Interim support at highlighted region into 8700- Break to mark larger correction lower
  • Subsequent support objectives at 8605 & 8535
  • Key resistance 8905/38 – bearish invalidation
  • Event Risk Ahead: Bank of Canada (BoC) Interest Rate Decision tomorrow, Retail Sales on Thursday and Canada Consumer Price Index (CPI) on Friday

NZDCAD 30min

NZDCAD Posts Outside Day Reversal Pre-BoC; Shorts Face 8700 Hurdle

Notes: NZDCAD has posted an impressive outside-day reversal candle off a key resistance confluence into 8900 - a region is defined by former trendline support extending off the 2011 low, the 200-day moving average and a near-term sliding parallel. Today’s decline rebounded off the median-line extending off the July before coming back to test the weekly opening-range low as resistance.

The focus is lower while within the pitchfork formation off last week’s high with a break of today’s low targeting trendline support dating back to September 23rd. Bottom line: look to sell rallies while below 8865 (bearish invalidation) targeting 8700, 8650/75 & 8605.

A quarter of the daily average true range (ATR) yields profit targets of 26-29pips per scalp. Caution is warranted heading into event risk out of Canada into the close of the week with the BoC, retail sales, & CPI release likely to fuel added volatility in CAD crosses.

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Relevant Data Releases Next Week

NZDCAD Posts Outside Day Reversal Pre-BoC; Shorts Face 8700 Hurdle

Other Setups in Play:

  • Webinar: ECB/BoE Playbook- EUR/GBP Shorts Target Key Support Zone
  • EURGBP Reverses Off Critical Resistance- Shorts Favored Sub 7386
  • EURUSD Long Scalps Eye Key Resistance - Breakout Targets 1.18
  • EURAUD Recovery Scalp- Rally to Offer Favorable Shorts
  • Webinar: USD Weakness Targets Key Support- Comm Bloc Overstretched?

---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Deskat 12:30 GMT (8:30ET)

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