Hello traders! The NZD/CAD currency pair has been ranging throughout 9-23 June, between 0.8715 support and 0.8792 resistance. First, there was an attempt to break below and after the weekend opening price was below the support. But the closing price still remained above, validating the support rejection.
On June 23 price finally broke above the 0.8792 resistance, with the 4h closing above. After the breakout NZD/CAD corrected down sharply, and yet again re-teste the 0.8715 support. But then it went back up and broke above the 50 Exponential Moving Average, which is currently acting as the support. We have applied the Fibonacci retracement indicator to the last wave down and it shows that 61.8% Fibs at 0.8745 have been rejected today cleanly. At the same time, the 50 EMA is being respected along with the uptrend trendline, which might result in the beginning of a strong move to the upside.
Therefore, as long as the 4h closing price remains above 0.8745, NZD/CAD should be expected to rise towards one of the Fibs applied to the current correctional move down. First is 127.2% retracement at 0.8815 and second is 161.8% retracement at 0.8832.
Bias: Bullish while above 0.8745
Potential Support Zone: 0.8745 – 0.8755
Potential Targets: 0.8815, 0.8832
Have a profitable trading!