Traders Beware!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Charalambos Pissouros

NZD/CAD Breaks Decisively Below 0.8500

NZD/CAD traded lower on Thursday, breaking below the key support obstacle of 0.8500, which stopped the rate from drifting lower on August 7th and 19th. The prevailing trend on the 4-hour chart appears to be a downtrend since July 22nd, while the dip below 0.8500 confirms a forthcoming lower low and perhaps the continuation of that trend. Thus, we will hold a bearish stance with regards to the short-term outlook of this pair.

If the bears are willing to stay behind the driver’s seat, we may see them challenging the 0.8455 barrier soon, a support marked by the low of October 15th, last year. The rate could stall around there for a while, or even rebound somewhat, but as long as it stays below 0.8500, we would see a decent chance for the bears to jump back into the action and perhaps overcome the 0.8455 zone. Something like that may pave the way towards the 0.8400 territory, which is slightly above the inside swing highs of October 8th and 9th.

Our short-term momentum studies detect strong downside speed and support the notion for some further near-term declines. The RSI edged south and appears ready to touch its 30 line very soon, while the MACD lies below both its zero and trigger lines, pointing down as well.

On the upside, we would like to see a strong recovery above 0.8565, which is Tuesday’s high, before we abandon the bearish case. Such a break would confirm a forthcoming higher high on the 4-hour chart and may allow the rebound to continue towards the peak of August 15th, at 0.8600, or the high of August 7th, near 0.8625. If the bulls are strong enough to overcome the 0.8625 level as well, then we may experience stronger upside extensions, perhaps towards the 0.8700 zone, which provided decent resistance on August 5th and 7th.

NZD/CAD 4-hour chart technical analysis


The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

75% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.