NZD/CAD: Bulls are close to test the depth of bullishness.

General overview: NZD/CAD has moved to the upside position in the market. Opportunity although there is still upwards rising in the market. the market will show its positive side now. the market shows its strong momentum walk this time. This symbol represents the New Zealand Dollar – Canadian Dollar cross pair. These two currencies are both categorized as commodity currencies. Canada is primarily associated with oil and lumber, conducting significant trade with the United States.

New Zealand is more associated with agricultural commodities and exports dairy and meat products to Australia and China. The price climbed over the higher path this time. The bulls are finding their aggression mode this time. Despite a third consecutive week of losses for the S&P 500, a frequent bellwether for global risk appetite, the growth-linked New Zealand Dollar defied gravity and pushed higher. The pair are preferring the RBZ rate decision. NZD/CAD bulls in control with a price on the way to making a higher high. A revisit to the POC and rejection will open prospects of a break of Dec support.

Technical analysis: From the Technical point of view, we can say that market will move on the higher side in the market. Finance Minister Grant Robertson also offered upbeat commentary, saying that the economy ‘will improve’ further by early 2021 and that it is rebounding from a recession. The pair is showing its move towards higher highs in the market. the market will go for the strong buy-side in the market. The bulls are favoring the market and taking the market towards its higher side. In the 4 hourly chart, we can say that market will go up and the buying level will be 0.9052 as the RSI is also 50 line and creating bullish signals.

In the daily chart, we can see the bullish engulfing in the market so it will the strong bullish signals in the pair. So, we suggest our buyers to go for the buy-side in the market. The support of the pair is 0.9000 followed by 0.8940 and resistance is 0.9099 followed by 0.9159. Odds are in favor of bulls and we will keep our view bullish on the pair above 0.8900 level.

Trade idea: based on the chart and studies above we would suggest that buy pair above 0.9047 level and the target will be 0.9108 -0.9143 and stop loss will be 0.8934.

 

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