The kiwi as a whole has been at risk on the down side since a while, incase of NZDCAD, it can be seen consolidating itself between 0.88000 and 0.86000 since early May. Nevertheless, economists at ANZ Bank think NZDUSD will ultimately find support from cyclical momentum and earlier OCR hikes. If risk off mood persists , we will see more of NZD weakness. The kiwi strength had been compromised by the general softening in global risk and downplaying the currency from its highs and US bond yields sink to 5month lows. NZDUSD continues with the previous day’s selling pressure and tests the multi-month low. and US dollar remains steady below 13 week highs on risk appetite.

Investors remain cautious about the concern on rising Delta variant COVID-19 infections. Increasing corona cases in the Asia-Pacific region underpins the demand of the US dollar on the back of its global safe haven asset.

0.87800 was suppose to be the defining level for NZDCAD but it failed to break above our upper trend line which wouldve provided an indication that the correction under the weekly time frame has been completed and was time for it to go for its first bullish wave impulse. The current market scenario and strong resistance at top of the consolidation is providing an indication for a further sell off in the pair towards 0.84750 support which might provide a strong supply and increase in demand to provide space for bulls in the market again.

The 8, 13 and 21 EMA are also supporting the dovish trend increasing the chances to observe a dovish stance for NZDCAD failed to provide an impulse above tha forementioned. Another expedition was made  on 17th and 24th May by NZDCAD which took it towards 50 EMA where our 61.8% and 50% fibb levels are present but were unable to cross such strong price actions, which inreturn acted in concern for the pairs retracement below the major technical indicators. 

A tough knot is going to be unfettered by bears

Jul 09 2021

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