FxWirePro: NZD/CAD downtrend intact, test of 85.85 likely in the medium-term
NZD/CAD weekly charts show that downtrend for the pair is intact and we see scope for tests of 85.85 in the medium-term. Technical indicators are biased lower, Stochs and RSI convergence seen with price action. MACD indi…
NZD/CAD weekly charts show that downtrend for the pair is intact and we see scope for tests of 85.85 in the medium-term.
Technical indicators are biased lower, Stochs and RSI convergence seen with price action.
MACD indicator shows a bearish crossover of MACD line over the signal line and histogram shows growing divergence between moving averages.
On the fundamental side, analysts feel oil prices have bottomed out and will gradually edge higher to trade in the $40-$50 range in the medium-term.
Rising oil price and improving macro-economic conditions in the U.S. is likely to keep the Loonie supported.
The Kiwi looks overvalued at current levels, however, surge in global risk sentiment, manifested by higher equity and commodity prices could persist and offset the negative NZ interest rate argument, supporting the NZD.
We expect NZD/CAD to trade in 85.85-87.85 levels in a 3-6 month horizon.
