NZDCAD has taken an exit from our bearish channel with an impulsive bullish stance and broke above the major monthly resistance finally on the fourth attempt in past 5 months. In our previous analysis published on 28th August, we emphasized on building bullish momentum by NZDCAD based on reaching our targeted destination 0.88671 and the NewZealand dollar recovering from severe Covid-19 cases in order to lift back its economical indicators - favored the hawkish momentum enough to beat the strenghtening loonie. MACD was also depicting 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. Currently the market is hovering above the 50% fibb level and is looking for a bearish correction before kissing 61.8% fibb at 0.9004. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

According to the elliot wave pattern, in four hourly time frame, NZDCAD calls for a bearish correction - most probably the fourth reversal wave before completing its fifth bullish wave at 61.8% fibb level. The relative strength index on four hourly chart is also facing overbought conditions while being prevented from any further gains because of a failing to break above an important price action 0.8980. NewZealand Dollar might go for a temporary dive towards 0.89000-0.89100 to complete its bearish correction, if this is proceeded by a bullish closing above the aforementioned levels - retail traders should fill their bullets with buying positions. In the four hourly chart, observing the exponential moving averages 50 and 200, NZDCAD to complete its bearish correction might fall towards 0.8810 i.e 38.20 fibb retracement level. A bullish closing above the aforementioned zone should also be considered as a better price action for executing buying entries. 

NZDCAD

Sep 05 2021

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