The NZDCAD rallied up around 100 pips during European Open and therefore it lifted up to 0.8868 from 0.8738 lows today. In the last 6 hourly session however, pair faces an intraday resistance at 200-period SMA, which is ta 0.8870, with pound and kiwi be the strongest currencies for the day.
The bigger picture though, is that the NZDCAD’s downtrend, which has been in place since June, still seems to be the current overall scenario. The Canadian employment report last Friday was supportive of the BoC’s path to normalize monetary policy.
Policymakers have been viewing the Canadian economy as having escaped the drag from the downside oil price shock of recent years.
The failure of breaking the 200-period SMA in the hourly chart along with upper fractal formation and the doji candle formed the last hour, triggered our SHORT position at 0.8847 near term target at 0.8810 which is slightly above the 20 and 50-period SMA.
The support arrives at 0.8890. Nevertheless, short-term Stochastic turned down, while MACD is the hourly frame is positive but on the 4-hour chart remains negative since early August.