Hello traders! NZD/CAD is currently trading at a potential supply zone. Price remains below the 200 Exponential Moving Average as the high price of the spike produced on the March 19, hasn’t been broken. Overall, the trend seems to be bearish and the price is likely to move towards strong support located at 0.8186. This level is confirmed by two Fibonacci retracement levels. First is the 76.4% Fibs applied to the last corrective wave up. Second is the 23.6% Fibs applied to the major wave down.
At the same time, on the 1-hour chart price has reached the 127.2% Fibonacci retracement level and rejected it cleanly. Another factor to consider is Fibonacci cycles. The next cycle is about to start and this could put some pressure on the NZD/CAD price. Finally, the RSI uptrend trendline was broken, which also suggests bearish pressure.
On the upside, only 4h break and close above 0.8545 would invalidate bearish outlook and can result in an uptrend for the medium to long term.
Bias: Bearish while below 0.8545
Potential Resistance Zone: 0.8510 – 0.8545
Potential Targets: 0.8185
Have a profitable trading!