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NZDCAD has remained in an ascending channel since March. Currently, we see a drop out of the channel as prices range at the 0.87c handle.
The previous attempt at a fall out of the lower channel at 0.8574 saw prices retrace and move towards the median regression. The pair now looks to another bid at the 61.8% of the 0.9014/0.8353 downside Fibonacci leg.
The recent bearish divergence on the momentum indicator could lead to further weakness at the previous low. However, a bounce at the said level could lead prices towards the downside border of the Ichimoku cloud.
At this level, the pair would trade at the 0.88c/lower ascending channel.
A shorter-term outlook looks at prices trading in a descending channel.
A test at the median regression and the previous low confluence line would confirm that the bias is on the downside. However, a recent bullish divergence suggests that prices may bounce at the said level.
This would bring another attempt to push prices back into the lower border of th...
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