The New Zealand dollar exchange rate (NZDCAD) reached the support area within the 0.8320 range last week. The weekly chart below shows how this level was holding back sellers in 2018 and 2015. The question is how the price action will go this time.
Last week’s closing took place under the 2018 low, but this week we see a recovery and a return above 0.8320. This gives us a chance to form an inside bar and a subsequent breakout from the formation could determine the direction of the movement.
The situation on the daily chart also looks interesting, where the inside bar formation has already been created and the formation was broken up. It is therefore possible that the price will now move in the direction of the IB mother candle maximum at a weekly interval (0.8469). This level is in the resistance zone (0.8488) which, if overcome, would open the way to higher increases. Additionally we have a bullish divergence on the daily chart. The resistance zone within 0.8888 seems to be the key in this scenario. Slightly lower, about halfway to this resistance zone we still have an area at 0.8655, which may also stop buyers.
