NZDCAD Down 4 Pips Over Past Hour, 4 Day Down Streak Ended; Nears 50 Day Moving Average

Hourly Update

(Last Updated September 11, 2020 16:17 GMT)

At the moment, NZDCAD’s rate is down -4 pips (-0.05%) from the hour prior. This move is a reversal from the hour prior, which saw price move up. Regarding the trend, note that the strongest trend exists on the 100 hour timeframe. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

NZDCAD End of Day Recap

Updated 00:30 GMT (04:30 EST)

A moment of silence, please, for the end of NZDCAD’s 4 day down streak; price ended the previous day up 26 pips (0.3%) to finish the day at a rate of 0.87847. Compared to its peers in the Forex, NZDCAD gave its buyers a return that ranked 12th in terms of percentage change since the previous day. The price chart of NZDCAD below illustrates.

NZDCAD

NZDCAD Technical Analysis

The first thing we should note is that the current price of NZDCAD is sitting close to its 20, 50, 100 and 200 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 28 pips away. The clearest trend exists on the 14 day timeframe, which shows price moving up over that time. For additional context, note that price has gone down 19 out of the past 30 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on NZDCAD, with 4 buy signals on our radar and 5 sell signals. This imputes a buy/sell ratio of 0.8, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a relative strength index technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

NZDCAD in King’s Crown Formation on daily AND 4hr chart….RSI in strong sell zone in Daily and 4hr timeframe….Right Tip formed both on Daily and 4hrs3.


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