NZD/CAD Down 156 Pips; Crosses 50, 100 and 200 Day Moving Averages

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. Out of the 40 instruments in the Forex asset class, NZD/CAD ended up ranking 31st for the day in terms of day-over-day price change. Let’s take a look at price chart of NZD/CAD.

NZD/CAD Technical Analysis

Moving average crossovers are always interesting, so let’s start there: 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. In addition to the moving average crossover, NZD/CAD may have broken its trend on the 14 day basis, as the trend’s momentum appears to be slowing down. The clearest trend exists on the 90 day timeframe, which shows price moving down over that time. For additional context, note that price has gone up 6 out of the past 10 days.

A final note on correlations: in the recent most week, CAD/CHF has been the pair most correlated with NZD/CAD — a common occurrence, given the presence of CAD in both currency pairs. On the flip side, in terms of pairs with the least correlation to NZD/CAD, AUD/USD is the pair that holds that distinction for the past week, while USD/TRY does on a two week basis.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on NZDCAD, with 6 buy signals on our radar and 7 sell signals. This imputes a buy/sell ratio of 0.86, which is neutral. 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.

MACD low, RSI<50, crossed SMA 100, breakout and also going to pivot point P