- The NZD/CAD pair is moving quite rapidly, and the fact that the market has rallied significantly as it has enclosed toward the top of the candlestick, suggest that we are in fact going to continue to see a lot of buyers come into this picture.
- After all, the 0.8550 level is an area that we have seen a lot of resistance to previously, and therefore I think that the technical analysis is starting to suggest that we are going to go higher.
Crude Oil and Technical Analysis
First off, when you look at the technical analysis, the market looks very bullish, and it looks like we are going to continue to see buyers. I think that short-term pullbacks will continue to offer quite a bit of support, as we have so much in the way of momentum. Furthermore, the Relative Strength Index is not above the 70 level, suggesting that we are not quite overbought. All things being equal, this is a market that I think will look very much like a situation that could continue to strengthen, especially considering that Canada doesn’t have its biggest supporter out there at the moment.
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All things being equal, the Canadian dollar tends to move on the strength and weakness of the crude oil market, and it looks like the crude oil market is anemic at best. If that’s going to be the case, it makes a certain amount of sense that the New Zealand dollar should continue to see buyers jump into the market and push to the upside.
The size of the candlestick is very bullish as well, so I think this is a market that probably continues to see a lot of interest, and therefore I think we have a certain amount of momentum jump into the market regardless of what happens.
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