NZDCAD has been moving in a horizontal trend (consolidation) since January 1982. As a result of market rally since February 2009, pair again reached level 0.9800, where already in November last year first strong supply reaction emerged. In spite of that, in following months, pair circulated around this resistance to start declines in June.
Looking on the weekly chart, we will see that as a result of these declines market last week has already broke the bullish trend line and opened its way to further declines.
It is also worth noting that due to last Saturday growth the market has reached and re-testing rejected from the bottom (as resistance) the mentioned trend line. Permanent rejection of this level was also supported yesterday by the Bank of Canada monetary decision. Surprisingly for the market, the Bank raised its key interest rate yesterday to 1.00% which triggered a strong appreciation of the Canadian dollar.
Looking back at the weekly chart, we note that nearest technical support is still more than 120 pips away. So it seems that declines should continue in near future.
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