NZD/CAD Down 17 Pips On 4 Hour Chart, Makes Big Move Relative to Two Week Trend; Crosses 50 Day Moving Average

NZD/CAD 4 Hour Price Update

Updated April 09, 2020 01:07 AM GMT (09:07 PM EST)

NZD/CAD is down 17 pips (0.2%) since the previous 4 hours (opening the current 4 hour candle near 0.8418), marking the 2nd candle in a row it has gone down. Relative to other instruments in the Forex asset class, NZD/CAD ranked 33rd the previous 4 hours in terms of percentage price change.

NZD/CAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

NZD/CAD is up 12 pips (0.14%) since the previous day (opening today near 0.84244017), marking the 2nd day in a row an increase has occurred. Relative to other instruments in the Forex asset class, NZD/CAD ranked 14th the previous day in terms of percentage 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 above its 50 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 50 day average, which is 9.1 pips away. Volatility for NZD/CAD has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. 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. 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. Or to simplify this another way, note that out of the past 14 days NZD/CAD’s price has gone up 8 them. And for candlestick traders, a special treat: there is a pin bar pattern showing up on the charts as well. Rejoice!

The View From Around the Web

We’re seeing some traders come out with interesting conviction on NZDCAD, with 3 buy signals on our radar and 4 sell signals. This imputes a buy/sell ratio of 0.75, which is bearish. 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.

Welcome back for some more chart analysis practice….Don’t trade a strategy just because someone tells you it’s a good strategy, always back-test the strategy in question over historical data before trading it with real money….Trading a strategy that has not been back-tested is the equivalence of gambling your money away, or trying to shoot a target when its pitch-black outside.