Hello traders! NZD/CAD is clearly trending up while producing higher highs and higher lows. Price continues to reject the 200 Exponential Moving Average on the 1-hour timeframe. Right now, a short term consolidation can be expected and any small pullback could provide a buying opportunity with a good risk to reward ratio.
The upside target is located at 0.8935, which is confirmed by 50% and 991.8% Fibonacci retracement level as per the chart below. It also corresponds to the average-price uptrend trendline and could be tested as soon as September 3.
Hourly and 4H break and close below the recent low at 0.8770 will invalidate the bullish outlook in which case either wide consolidation or a downtrend can be expected.
Bias: Strongly bullish while above 0.8770
Potential Support Zone: 0.8790 – 0.8800
Potential Targets: 0.8935
Have a profitable trading!