NZDCAD Down 1 Pips On Hourly Chart, 6 Day Up Streak Snapped; Sentiment Suggests Sellers in Charge

Hourly Update

(Last Updated September 23, 2020 0:18 GMT)

At the time of this writing, NZDCAD’s rate is down -1 pips (-0.01%) from the hour prior. NZDCAD has seen its price go down 8 out of the past 10 hours, thus creating some compelling opportunities for bears. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 50 hour timeframe. Price action traders may also wish to note that we see a pin bar candlestick pattern on NZDCAD. Given that we see downtrend on the 20 and 10 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

NZDCAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

NZDCAD, which opened today priced near 0.8871, is down 39 pips 0.43% since yesterday, marking a reversal from the day prior — and the end of a 6 day positive run. Out of the 40 instruments in the Forex asset class, NZDCAD ended up ranking 28th for the day in terms of price change. Here is a price chart of NZDCAD.

NZDCAD

NZDCAD Technical Analysis

Notably, NZDCAD is now close to its 20, 50 and 100 day averages, located at 0.8797, 0.8806 and 0.8739 respectively, and thus may be at a key juncture along those timeframes. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 50 day average, which is 64.7 pips away. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving up. Or to simplify this another way, note that out of the past 30 days NZDCAD’s price has gone up 15 them.

The View From Around the Web

Of note is that traders in aggregate have opinions on NZDCAD, with 1 buy signals on our radar and 14 sell signals. This imputes a buy/sell ratio of 0.07, which is quite bearish. As for the rationale, technical traders seem to be citing the appearance of channel, head and shoulders and trendline technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

NZD / CAD today is moving in the trajectory for sellers (bearish) so now after a possible retest we continue our sales for a lower target up to 0.87532 and its waiting for a trendline support break in h1 is enough to give the bears good opportunities….So we will see today if the negative news regarding the RBNZ interest rates will be published.


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram