NZD/CAD Down 156 Pips, Breaks Below 50, 100 and 200 Day Averages; in a Downtrend Over Past 90 Days

NZD/CAD Price Recap

The back and forth price flow continues for NZD/CAD, which starts today off at 0.84795 US dollars, down 156 pips 1.81% from the previous day. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 75.67% from the day prior, and up 54.96% from the same day the week before. Relative to other instruments in the Forex asset class, NZD/CAD ranked 31st yesterday in terms of percentage price change. Let’s take a look at price chart of NZD/CAD.

NZD/CAD Technical Analysis

Notably, NZD/CAD crossed below its 50, 100 and 200 day moving averages yesterday. 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 20 day average, which is 15 pips away. It should be noted, though, the 20 day simple moving average turned downwards, which may be a bearish sign. Something else of critical noteworthiness is that NZD/CAD’s momentum/trend on a 14 day basis may be decelerating. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving down. Or to simplify this another way, note that out of the past 30 days NZD/CAD’s price has gone down 17 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on NZDCAD, with 7 buy signals on our radar and 14 sell signals. This imputes a buy/sell ratio of 0.5, which is bearish. As for the rationale, technical traders seem to be citing the appearance of fibonacci and relative strength index technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

NZDCAD is based below key level at 0.8568Below SMA 100 on H1 framePrice rejected from 50% Fibonacci of preceding bearish wave at level 0.8573MACD shows start of bearish momentumIt’s expected more selling to target demand zone at level 0.8305