According to our previously published analysis on 17th August, the market moved precisely as we anticipated i.e 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 carried the same quality of having more bulls favoring the hawkish tone and order book was filling the remaining sell orders before taking another higher breakout. We emphasized on the pair trading below our exponential moving averages 8,13,21 and 200 in four hourly chart while in daily being hooked by EMA50 in daily which would drage the pair a bit lower towards our lower trend line, so we suggested to place your buying positions above 0.8660-0.87000 with our targeted destination at 0.88671 - 0.89604.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Now that the market has reached our targeted destination 0.88671, there is a strong resistance which NewZealand Dollar versus Canadian Dollar failed to break thrice and has consolidated near 38.2% fibb retracement level. The NewZealand dollar has to recover from severe Covid-19 cases in order to lift back its economical indicators and build bullish momentum enough to beat the strenghtening loonie. MACD is showing shift in momentum from dovish to hawkish and the extended complex corrective structure in daily will soon be broken to the upside and lift the pair towards 50% and 61.8% fibb retracement levels again i.e 0.8997 and 0.9004. From bearish perspective, if NZDCAD broke below our lower trend line i.e 0.87150 and 0.8680, then the Loonies strength would drag New Zealand dollar again towards 0.86051.

NZDCAD

Aug 28 2021

1