Since 30.06, NZDCAD has been in a steady uptrend, producing
higher highs and higher lows. The upward trend line acted as support a lot of times and was rejected almost on every occasion.
The potential strong fall of the US oil should strongly
affect CAD and send the rate lower against all majors, in our case NZDCAD is
one of the examples.
Consider buying NZDCAD today near S1 (0.8600), physiological
support that currently is being rejected. It seems that price should not move
much lower and therefore stop loss at 0.8550 could be used. The target is
161.8% Fibonacci applied to the 10.07 high and 16.07 low. However if the target is broken and the pair moves higher, the upside momentum will increase notably; in that case a trailing stop could be used to capitalize during the
strong uptrend. Only break below S2 (0.8524) should be able to change the
direction of the prevailing trend.
Support: 0.8598, 0.8523
The material has been provided by InstaForex Company – www.instaforex.com