Good day traders! The NZD/CAD has since the 2016 high traded lower within a channel. Price recently reached a 0.618% Fib retracement level and a 50% dashed median line of a pitchfork and started consolidating.
There is more room to the upside but if not from current levels, then the NZD/CAD might reverse lower soon.
The recent highs also reached the December 2019 high, but price failed to break above it. Should this intermediate uptrend continue, then the NZD/CAD could be heading towards the upper channel line and 0.786% Fib retracement level where strong resistance could turn price lower within the 0.9000 – 0.9050 zone.
Alternatively, price could break above the December 2019 high, get lots of breakout traders excited, and then reverse lower.
Either way, this move higher since the March low could be a corrective phase and if a reversal occurs, then price could drop towards the 0.8600, 0.8380, and 0.8015 levels.
More updates to follow.
Potential resistance: Now, or 0.9000 – 0.9050 price zone
Potential targets: 0.8600, 0.8380 and 0.8015
Until next time, have a great day and stay safe!