NZD/CAD Down 40 Pips, Crosses 20 Day Moving Average; 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 0.84281 US dollars, down 40 pips 0.48% from the previous day. This move happened on fewer tick price changes which may be a proxy for volume, as yesterday’s total tick count was down 10.64% from the day before — and down 38.17% 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. Below is a 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 20 day moving average 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 24.5 pips away. The clearest trend exists on the 90 day timeframe, which shows price moving down over that time. Also of note is that on a 14 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. For additional context, note that price has gone down 18 out of the past 30 days.

A final note on correlations: in the recent most week, NZD/USD has been the pair most correlated with NZD/CAD — a frequent scenario, considering NZD finds itself in both pairs. Alternatively, regarding pairs with the lowest correlation to NZD/CAD? Well, TRY/JPY is the pair that holds that distinction for the past week, while AUD/NZD does on a two week basis.

The View From Around the Web

Of note is that traders in aggregate have opinions on NZDCAD, with 5 buy signals on our radar and 1 sell signals. This imputes a buy/sell ratio of 5, which is very bullish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

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