3-monthly movement inside the channel
Situation on the NZDCAD chart got very interesting. It was not until last week that the lower limitation of channel was tested strengthened by key support at 0.9200 and a week later the upper limit of the same channel was tested. Currently two scenarios may appear. The first is the rebound and the decline in support again: 0.9300, 0.9200. In turn, the second scenario is breaking out of the channel.
If breakout of the upper limit of the channel occurs possible is a move to 0.9630
Movement inside the channel lasts a long time, and last week’s test of key support 0.9200 gave the demand more strength. As a result, an attack on the upper limit of the bearish channel may be successful.
After successful breakout, further targets for demand are located at the levels of 0.9500, 0.9570, 0.9630. The last of these levels is strong enough to hold demand for longer or even trigger a trend reversal.
