New Zealand Dollar versus Canadian Dollar had moved precisely in accordance to our analysis published on 13th July - displaying strong bullish sentiments over the pair after staying long in the oversold conditions. We anticipated that the market was creating atmosphere of a corrective bullish structure to complete wave 'c'  and alter the market conditions by provide us with further visibility of the kiwi/loonie sentiments. RSI under the weekly chart was trading below 46.0 or i would say the 50.0 level which balanced the equilibrium of the pairs strength and portrayed its further destination over the chart. 0.86000 is the current lowest low with the strong price action and supply and demand zone which if broken - will drive the pair towards 0.85700. But the aforementioned scenario will only be possible if NZDCAD broke 0.87000-0.86800 - which is our strong resistance turned support now. 

BULLISH AND BEARISH CONDITIONS / POSSIBILITIES :

From the current market scenario we are anticipating that NZDCAD will take a bullish reversal from 0.87000  because of having more liquidity and strong supply demand zone that can uplift the pair again with hawkish tone. 0.8660-0.8680 also carries the same quality of having more bulls favoring the hawkish tone and order book must be filling the remaining sell orders before taking another higher breakout. The current dovish stance is also due to the double top formation in four hourly chart which dragged NZDCAD lower. The pair is trading below our exponential moving averages 8,13,21 and 200 in four hourly chart while in daily being hooked by EMA50 in daily. We are suggesting to place your buying positions above 1.8660-1.87000 with our targeted destination at 0.88671 - 0.89604.

NZDCAD

Aug 17 2021