- NZDCAD built on the descending channel breakout momentum and shot to six-week tops.
- Acceptance above 61.8% Fibo. level might have already set the stage for additional gains.
- The pair now seems poised to aim back towards retesting YTD tops, around 0.9000 mark.
- Any pullback might now find support near 0.8845-40 region ahead of the 0.8800 handle.
In this week’s #ThrowbackThursday, we revisit our NZDCAD bullish call initiated last week on September 10th. As was expected, the pair attracted some dip-buying near mid-0.8700s and build on the descending channel breakout momentum. The pair prolonged the bullish trajectory and shot to six-week tops, around the 0.8900 handle.
The pair has now found acceptance above the 61.8% Fibonacci level of the 0.9010-0.8576 downfall and seems poised to appreciate further. The constructive outlook is further reinforced by the fact that oscillators on the daily chart have just started gaining positive traction and are far from being in the overbought territory.
Hence, some follow-through strength towards 0.8935-40 congestion zone, en-route YTD (just above the key 0.9000 psychological mark), now looks a distinct possibility.
On the flip side, any meaningful pullback might find decent support near the 0.8845-40 region (61.8% Fibo. level). Sustained weakness below could drag the pair further below the 0.8800 handle, towards retesting the 0.8750 support area. The latter coincides with 38.2% Fibo. level, which if broken will shift the near-term bias in favour of bearish traders.