NZD/CAD Backed By Support

NZD/CAD reached the support level last week during the early hours of the US trading session on Friday. The pair went as low as 0.8830 and was supported by market participants to levels beyond 0.8870.

The pair is seen to consolidate between two narrowing lines of support and resistance on the long term. If bears can get a break below 0.8750 this would indicate a new leg down that could turn into another medium term downturn.

On the other hand, if bulls get the strength to push the pair up, we could see a break above 0.9400 which would invalidate the medium term bearish trend and create opportunities for levels not reached since late 2016 early 2017.

Chart: NZD/CAD D1