NZDCAD Up 4 Pips On Hourly Chart, Moves Up For the 3rd Consecutive Day; Eyes 50 Day Average

Hourly Update

(Last Updated September 17, 2020 23:17 GMT)

At the moment, NZDCAD’s rate is up 4 pips (0.05%) from the hour prior. This is a reversal of the price action on the previous hour, in which price moved down. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 100 hour timeframe. The moving averages on the hourly timeframe suggest a bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.

NZDCAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

NZDCAD is up 25 pips (0.28%) since yesterday (opening today near 0.88497), marking the 3rd consecutive day an increase has occurred. Compared to its peers in the Forex, NZDCAD gave its buyers a return that ranked 6th in terms of percentage change since yesterday. The price chart of NZDCAD below illustrates.

NZDCAD

NZDCAD Technical Analysis

Coming into today the current price of NZDCAD is sitting close to its 20, 50 and 100 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. 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 41.5 pips away. Volatility for NZDCAD 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 up. Or to simplify this another way, note that out of the past 14 days NZDCAD’s price has gone up 8 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 13 sell signals. This imputes a buy/sell ratio of 0.08, which is quite bearish. As for the rationale, technical traders seem to be citing the appearance of channel and flag technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

CURRENT TRADE READY TO GOOk so my alert went off and I will be taking this trades as I’d had it marked up and ordered ready weeks ago…..and decided to share this We have a simple sweet trade….If you can channel that rejection as I did here, then just wait for price to return and wait for a second rejection then place a trade Aggressive traders can trade now, or at the break of the 20ema HOW TO TRADE LIKE THEM –


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