New Zealand Dollar versus Canadian Dollar had broken below our lower trend line in the daily time frame with losses extending towards 85.75, however, the high supply demand zone provided the pair with a support and managed to rally towards 88.50. NZDCAD has taken our lower trend line a strong resistnace - along side 50% and 61.8% fibo retracement levels which are preventing the bulls from further gains at the moment. The exponential moving averages 50 and 200 in the daily time frame are acting as a support to keep the pair from falling or adapting to any dovish trend for now. In the daily time frame, the pair can be seen breaking out of the inverted head and shoulder structure, with neckline at 0.8779 and 0.88348. The exponential moving averages 50 and 200 in the daily time frame are also being supported by the upper neckline at 0.8834 price action, which NZDCAD is currently struggling to stay above. 

BULLISH AND BEARISH CONDITIONS/ POSSIBLITIES :

According to elliot wave pattern, NZDCAD seems to be in a bullish corrective structure of higher degree - as it has not broken above 0.8960 where we have 50% fibo retracement on the weekly/ intraday chart. The pair is still in an extended consolidative bearish structure and for NZDCAD to fall any lower, it needs to break below 0.8800 price with a closing that extended below 38.2% fibo retracement level, this would ensure the continuation of bearish trend. For the bullish side, the pair can be in a bullish trend of minor degree as it has broken above some major resistances, but for further upside - NZDCAD needs to break 0.8920 and 0.8960 to develope intraday hawkish momentum. 

NZDCAD Trading Between 50% & 61.8% Fibo

Oct 29 2021