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 Completes a Non-failure Swing Top

NZD/CAD was trading within an upside channel from July 10th until yesterday, when it slid below the lower end. The tumble continued thereafter, with the rate falling below the 0.8822 support, thereby completing a non-failure swing top pattern. Thus, having all these technical signs in mind, we would consider the short-term bias to have turned negative for now.

At the time of writing, the rate is hovering slightly above the 0.8790 hurdle, which if broken may allow the bears to drive the battle towards the 0.8760 zone, a support marked by an intraday swing low formed on July 18th. Another break, below 0.8760, could carry more bearish implications, perhaps paving the way towards the low of July 16th, at around 0.8734.

That said, before the next leg south, we see the case for a corrective bounce, perhaps for NZD/CAD to test the 0.8822 area as a resistance this time. We base our view on our short-term oscillators. The RSI, although below 50, has bottomed somewhat, while the MACD has just turned negative, but its latest slide shows signs of slowing down. It could also bottom soon.

On the upside, we would like to see a decisive break above 0.8890 before we start examining whether the outlook has turned back positive. Such a move would confirm a forthcoming higher high on both the 4-hour and daily charts and may pave the way towards the peak of June 5th, at around 0.8920. If the bulls do not stop there either, then we may see them targeting the 0.8937 territory, which is fractionally below the peak of May 6th, and marks the high of May 1st.

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.

70% 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.

Copyright 2019 JFD Group Ltd