As a result of growth since February 2009 NZDCAD reached a very important level 0.9700, where in April 2014 there was a bearish reaction. Later declines did not change the general sentiment of the market and in March and again in December 2015 the market returned to the vicinity of this resistance. Each time there was a strong supply reaction, but there were not strong enough for sellers to take control of the market, as a result of which price re-oscillates again around this level. It is worth noting the two bearish pin-bar candles, which were made in November and June respectively.
Looking at weekly chart, we note that as a result of last week’s declines pair has already broken the upward trend line. Nearest level of support is currently in the area of 0.9130 and we can expect it to be tested in near future.
It should be noted that this level is the lower limit of consolidation for long time and its breaking could open the way for further declines over a considerably longer time horizon.
On H4 chart, we note that as a result of today’s declines, market has already beaten significant support at 0.9347. If there is no demand reaction in close future, the downturns could continue.
However looking at chart H1, we will see that there has been a strong demand response in last hour. Although the course was not yet above the defeated support (now resistance) all indicates that in near future it may happen.
