Since mid-November, NZDCAD has been moving in a rather narrow range between 0.8910 support and 0.9250 resistance. Around the middle of this channel, there is an additional level of 0.9080 stopping price movements. This is where the price arrived during yesterday’s session. Further movement of this currency pair depends on the behaviour in this area.
Up or down?
A level of 0.9080 is very important for NZDCAD. If we look at the slightly wider chart, we can see that it worked as support throughout December. The breakthrough took place only at the beginning of January, since then this level has served as resistance. Several times in this place the initiative was taken over by the supply.
Yesterday there was a breakthrough of 0.9080. It is possible that we are dealing with a false break because at night the price returned under resistance. If there is now another downward rebound, we can expect the bears and a rally to return to the area of key support at 0.8910. In the event of a permanent defeat of 0.9080, the next target for demand will be 0.9240, which in December has halted increases three times.